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.
The Companies Act 2013 has outlined the related parties as:
Following transactions are termed as Related Party Transactions:
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