Understanding Related Party Transaction Governance at Scale

In a promoter-led Indian business group, related party transactions are not an occasional exception. They run through every month's books: shared brands, intra-group loans, common suppliers, cross-guarantees, management fees and asset transfers between dozens of entities. Most governance failures that have destroyed shareholder value in India, from Fortis to Coffee Day, ran through exactly these channels. This advanced concept course is for CFOs, finance controllers, senior corporate finance leaders, corporate development teams and pre-IPO founders who have to make related party governance work across a large group, not just on paper. It covers who counts as a related party under the Companies Act, SEBI LODR and Ind AS 24, how approval thresholds and materiality actually work, what the audit committee must see and test, how to benchmark arm's length pricing, and how to build a group policy, ERP controls and continuous monitoring that hold up at thousands of transactions a year. It closes with disclosure, shareholder votes, auditor scrutiny and the special situations (royalties, intra-group funding, IPOs and restructurings) where related party risk is highest. Educational content only, not investment or legal advice.