Statutory Meaning & Definition
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.
Frequently Asked Questions (FAQs)
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.
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.
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 Circulars
Recent analysis and regulatory updates related to MCA:
MCA Overseas Listing Amendment Rules 2026 (G.S.R. 968(E)): Equity Instruments, IFSC Companies and the 75% QIB Route
Published: 5 November 2026
INC-20A Declaration for Commencement of Business: 180-Day Due Date, Fees, Penalty & MCA V3 Filing Guide
Published: 4 November 2026
MSME Form I Half-Yearly Return: Due Dates, Applicability, Section 405(4) Penalty & MCA V3 Filing Steps
Published: 2 November 2026
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