Related Party Transaction,Section 188 of Companies Act,2013

Related Party Transaction,Section 188 enumerated 7 Transactions wherein the limits of the transaction is defined in Rule 15 of Companies(Board and its Meeting),Rules 2014 and the defination of related party defined in Section 2(76) and Definition of Relative is Defined in Section 2(77) read with Rule 4 of Companies(Specification of Definition Details),Rules,2014 wherein only 8 Relations i.e Close Relation are defined earlier under 1956 Act,22 Relations are defined.

No Central Government Approval is Required now.
In case of Listed Company as per Circular issued by Sebi dated 14 April,2014,17 July,2014 and 15 September,2014..........All RPT requires prior approval of Audit Committee and all Material RPT requires Special Resolution in addition to Approval of Audit Committee.There is a provision of Omnibus Approval for RPTs.

Disclosure Requirement in explanatory statement annexed to the Notice about the Name of Related Party and Nature of Transactions etc.There is a requirement of Disclosure in Boards Report with Justification of Related Party Transactions.

Thanks and Regards
CS Utkarsh Gupta