Section 23: Related party transactions

Q: What does Section 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SLODRR) deal with?

Section 23 SLODRR pertains to "Related party transactions". It is part of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a legislation enacted by the Parliament of India. Section 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SLODRR) governs related party transactions. As verified on 22 May 2026.

Q: Is Section 23 SLODRR still in force?

Yes, Section 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is currently in force across the Republic of India.

Q: What is धारा 23 SLODRR?

धारा 23 SLODRR is the Devanagari Hindi reference for Section 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Section 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SLODRR) governs related party transactions. As verified on 22 May 2026.

Q: What is Dhara 23 SLODRR?

Dhara 23 SLODRR is the Roman Hindi reference for Section 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. "Dhara" means "Section" in Hindi. Section 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SLODRR) governs related party transactions. As verified on 22 May 2026.

Q: How to cite Section 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015?

Cite as: "Section 23, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SLODRR)" in legal briefs. For academic writing, use the BlueBook format: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, 2015, § 23 (India).

Law on Tips Editorial Board

(1)

The listed entity shall formulate a policy on materiality of related party transactions and on dealing with related party transactions [including clear threshold limits duly approved by the board of directors and such policy shall be reviewed by the board of directors at least once every three years and updated accordingly] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/10, dated 9.5.2018 (w.e.f. 2.9.2015).]:

Explanation.—A transaction with a related party shall be considered material if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceeds ten percent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity.

(1A)

[ Notwithstanding the above, [with effect from July 01, 2019,] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/10, dated 9.5.2018 (w.e.f. 2.9.2015).] a transaction involving payments made to a related party with respect to brand usage or royalty shall be considered material if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceed [five] [Substituted 'two' by Notification No. SEBI/LAD-NRO/GN/2019/22, dated 27.6.2019 (w.e.f. 2.9.2015).] percent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity.]

(2)

All related party transactions shall require prior approval of the audit committee.

(3)

Audit committee may grant omnibus approval for related party transactions proposed to be entered into by the listed entity subject to the following conditions, namely-

(4)

All material related party transactions shall require approval of the shareholders through resolution and [no related party shall vote to approve] [Substituted 'the related parties shall abstain from voting on' by Notification No. SEBI/LAD-NRO/GN/2018/10, dated 9.5.2018 (w.e.f. 2.9.2015).] such resolutions whether the entity is a related party to the particular transaction or not.

[Provided that the requirements specified under this sub-regulation shall not apply in respect of a resolution plan approved under section 31 of the Insolvency Code, subject to the event being disclosed to the recognized stock exchanges within one day of the resolution plan being approved;] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/21, dated 31.5.2018 (w.e.f. 2.9.2015).]

(5)

The provisions of sub-regulations (2), (3) and (4) shall not be applicable in the following cases:

(6)

The provisions of this regulation shall be applicable to all prospective transactions.

(7)

For the purpose of this regulation, all entities falling under the definition of related parties shall [not vote to approve the relevant transaction] [Substituted 'abstain from voting' by Notification No. SEBI/LAD-NRO/GN/2018/10, dated 9.5.2018 (w.e.f. 2.9.2015).] irrespective of whether the entity is a party to the particular transaction or not.

(8)

All existing material related party contracts or arrangements entered into prior to the date of notification of these regulations and which may continue beyond such date shall be placed for approval of the shareholders in the first General Meeting subsequent to notification of these regulations.

(9)

[ The listed entity shall submit within 30 days from the date of publication of its standalone and consolidated financial results for the half year, disclosures of related party transactions on a consolidated basis, in the format specified in the relevant accounting standards for annual results to the stock exchanges and publish the same on its website.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/10, dated 9.5.2018 (w.e.f. 2.9.2015).]