Related Party Transactions- Section 188

“Related Party”, with reference to a Company, means:

A director or his relative;
A key managerial personnel or his relative;
A firm, in which a director, manager or his relative is a partner;
A private company in which a director or manager or his relative is a member or director;
A public company in which a director or manager is a director and holds along with his relatives, more than two per cent. of its paid-up share capital;
Any body corporate whose Board of Directors, managing director or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager;(other than advice, directions or instructions given on professional capacity.)
Any person on whose advice, directions or instructions a director or manager is accustomed to act:
(other than advice, directions or instructions given on professional capacity.)
Any company which is—
(A) a holding, subsidiary or an associate company of such company; or
(B) a subsidiary of a holding company to which it is also a subsidiary;
Such other person as may be prescribed.
A director (other than an independent director) or key managerial personnel of the holding company or his relative with reference to a company. (Rule 3)