IBC1 min read
Undervalued Transaction
A transaction where the corporate debtor transfers an asset for significantly less than its fair market value within 2 years (related party) or 1 year (others) before CIRP commencement. Reversible under Section 45 of IBC.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Undervalued Transaction in Indian corporate law?▼
A transaction where the corporate debtor transfers an asset for significantly less than its fair market value within 2 years (related party) or 1 year (others) before CIRP commencement. Reversible under Section 45 of IBC.
Q2. Why is Undervalued Transaction important for compliance?▼
Undervalued Transaction is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Undervalued Transaction?▼
Undervalued Transaction is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to IBC:
IBBI Starts ₹500 Fee for Delayed Liquidation Forms Under Regulation 47B
Published: 24 September 2026
IBBI Further Extends PGIRP Form Filing Deadline to December 31, 2026
Published: 24 September 2026
IBBI (Liquidation Process) (Fifth Amendment) Regulations, 2026: New 30-Day Rule for Reporting Changes to the Stakeholder List
Published: 23 September 2026