Related party transactions are transactions that a company does with parties related to it. For example, let’s say Mr. X is promoter of Company ABC and Company DEF. if Company ABC buys goods and services from Company DEF then such a deal is qualified as Related Party Transaction.
The Clause 49 of the Equity Listing Agreement of SEBI deals with the regulation of Related Party Transactions.
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The Companies Act 2013 has outlined the related parties as:
Following transactions are termed as Related Party Transactions:
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