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RPT Approval Process


There are three types of authorities in a Company through which the Related Party Transactions (RPTs) are required to be approved in India i.e. Audit Committee, Board of Directors and Shareholders.

For identifying whether a particular transaction shall be required to be approved either by one or more of the above specified authorities, the professionals may have to dive a bit into the law, thus in order to identify this quickly, I have prepared a flow chart for ease of reference.