MCA1 min read
Related Party Transaction
A transaction between a company and its related parties (directors, KMP, subsidiaries, associates) requiring board/shareholder approval under Section 188 of Companies Act 2013. Listed companies also comply with SEBI LODR Regulation 23.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Related Party Transaction in Indian corporate law?▼
A transaction between a company and its related parties (directors, KMP, subsidiaries, associates) requiring board/shareholder approval under Section 188 of Companies Act 2013. Listed companies also comply with SEBI LODR Regulation 23.
Q2. Why is Related Party Transaction important for compliance?▼
Related Party Transaction is governed by the Ministry of Corporate Affairs under the Companies Act, 2013. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Related Party Transaction?▼
Related Party Transaction is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with MCA regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to MCA:
Form DIR-12 Complete Guide: Director & KMP Appointment, Cessation & Designation Filing Under Companies Act 2013
Published: 29 June 2026
MCA Data Centre Fire & Complete Relief Package — DPT-3, Name Reservation & CCFS-2026 (June 2026
Published: 28 June 2026
MCA CCFS-2026: Companies Compliance Facilitation Scheme — File Pending Annual Returns at 10% Additional Fees by July 15, 2026
Published: 28 June 2026