Related Party Transactions have quietly become one of the most amended areas of Indian corporate law
In the last twelve months alone, SEBI has replaced the flat ₹1,000 crore / 10% materiality test with a turnover-linked slab under Schedule XII (in force from 18 December 2025), recalibrated the Audit Committee trigger for subsidiary transactions, codified the validity of omnibus shareholder approvals, and permitted an abridged minimum-information format for smaller transactions. Under the Companies Act, the monetary caps in Rule 15(3) have been gone since 2019 and Section 188(5) has been decriminalised — yet both still appear in policies and board packs I come across.
I have put together a RPT presentation covering the full framework: Section 188 and Rule 15(3), Ind AS 24 and AS 18, Regulation 23 and Schedule XII, the Industry Standards Forum format, and a set of practical scenarios and common pitfalls. It is current as at 15 September 2026.
Sharing it here in the hope that it is useful to boards, audit committees, finance, internal audit and compliance teams working through their own RPT frameworks.
With over 28+ years of advising boards, promoters, CFOs and compliance teams on regulatory matters, our practice has handled a substantial volume of RPT work for both listed and unlisted entities — identification and mapping of related parties, approval matrices, omnibus approvals and materiality policies, audit committee, board and shareholder documentation, and disclosure compliances.
If your organization is revisiting its RPT policy or approval framework or wishes to undertake a review of the RPT framework, I would be glad to have a conversation. Connect with me directly at +91 98367 00220 or sandeeplakhotia2013@gmail.com for a confidential discussion.
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