Banking & Finance

The Securities and Exchange Board of India (SEBI) has issued Circular No. HO/38/11/(9)2026-MIRSD-POD/I/15382/2026, dated July 3, 2026, amending Paragraph 46 of the Master Circular for Stock Brokers. The circular introduces a new framework for handling client securities that remain unpaid, centered on the CUSPA (Client Unpaid Securities Pledgee Account) auto-pledge mechanism. This represents a significant shift in how brokers must manage unpaid securities, strengthening client

Nomination in mutual funds determines who receives the units upon the death of the holder. It is not merely a procedural formality; an incorrect or outdated nomination can delay the transmission of funds at a time when the family needs them most. With SEBI overhauling the mutual fund regulatory framework through the SEBI (Mutual Funds) Regulations, 2026 (effective April 1, 2026), and issuing a fresh circular on May 29, 2026 capping the number of nominees, understanding how to

The Bombay High Court has quashed Bank of India's fraud classification against Future Lifestyle Fashions Ltd promoters Kishore and Rakesh Biyani, holding that the bank's order was wholly unreasoned and failed to comply with the RBI's 2024 Fraud Master Directions.

The Delhi High Court on July 10, 2026, upheld the conviction of Bollywood actor Rajpal Yadav in seven cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881, and sentenced him to three months of imprisonment in each case, with all sentences running concurrently. Background The cases arose from a Rs 5 crore loan that Yadav had borrowed from Murli Projects Private Limited to finance his film 'Ata Pata Laapata.' When the film did not perform commercially a

The Supreme Court of India has flagged a deep-rooted nexus between banks, asset reconstruction companies (ARCs), and borrowers while hearing a public interest litigation alleging that Rs 1,537 crore owed to public sector banks was settled through two ARCs for just Rs 73.50 crore. The bench of Chief Justice Surya Kant and Justice V Mohana issued notice to the Centre, the Reserve Bank of India, and other respondents, calling for closer scrutiny of how large public sector bank l

RBI Credit Derivatives Direction 2026: India Opens CDS, TRS, and Credit Index Markets On 25 June 2026, the Reserve Bank of India (RBI) issued the Master Direction on Reserve Bank of India (Credit Derivatives) Directions, 2026, superseding the earlier 2022 framework that had been limited to single-name Credit Default Swaps (CDS) on corporate bonds. The new directions introduce a substantially expanded product suite, including CDS on credit indices, Total Return Swaps (TRS) on

Claiming money from a deceased person's bank account in India depends mainly on whether the account had a nominee, a joint holder, or neither. The Reserve Bank of India has laid down a settlement framework that banks must follow, and in many cases the process is far simpler than families expect. This guide explains how to claim money from a deceased person's bank account, the difference a nomination makes, the documents required, and how long a bank may take to release the fu

An error in your CIBIL report can sink a loan application even when you have never missed a payment. Wrong personal details, accounts that do not belong to you, closed loans shown as active, incorrect overdue amounts and unauthorised inquiries are all common. The law gives you a free, structured dispute process to correct errors in your CIBIL report, backed by the Credit Information Companies (Regulation) Act 2005 (CICRA) and RBI directions that require disputes to be resolve

The Reserve Bank of India's comprehensive anti-mis-selling framework for banks came into effect on July 1, 2026. This framework represents a fundamental shift in how financial products are sold to retail customers in India, imposing strict obligations on banks regarding product suitability, consent mechanisms, and customer remediation. Banks that fail to comply face mandatory refund obligations and regulatory action. The framework addresses persistent complaints about banks s

The Delhi High Court has ruled that the National Stock Exchange (NSE) is a public authority under the RTI Act, which means citizens can seek information from India's largest stock exchange under the Right to Information framework. A division bench delivered the ruling on July 1, 2026 in an appeal titled National Stock Exchange of India Ltd versus Central Information Commission, dismissing the exchange's challenge to an earlier single judge decision. The Court held that the NS

The Securities and Exchange Board of India (SEBI) has introduced a Closing Auction Session (CAS) to replace the Volume-Weighted Average Price (VWAP) method for determining closing stock prices on Indian exchanges. Beginning August 3, 2026, this change will apply to stocks in the cash segment that have active derivatives contracts, aligning Indian markets with global exchange practices. How the Closing Auction Session Works The CAS will operate from 3:15 PM to 3:35 PM each tra

If money disappears from your account through a fraudulent or unauthorised bank transaction, the Reserve Bank of India gives you strong protection, but only if you act fast. Under the RBI rules on limiting customer liability in unauthorised electronic banking transactions, a customer who reports the fraud promptly can bear zero liability and get the money credited back. This guide explains how to report the transaction, the timelines that decide your liability, and what the b

Bank lockers are widely used in India to store valuables such as jewellery, property documents, and other important items. Following a Supreme Court direction in February 2021, the Reserve Bank of India (RBI) issued revised locker regulations in August 2021 that significantly strengthened the rights of locker holders. These regulations introduced mandatory board-approved locker agreements, fixed bank liability for losses, and streamlined the nomination process. Understanding

On June 24, 2026, the Reserve Bank of India released a Draft Guidance Note on Model Risk Management (PR 2026-2027/528), inviting public consultation with a deadline for comments by July 24, 2026. The guidance represents the RBI's most comprehensive attempt to regulate quantitative models, particularly artificial intelligence and machine learning systems, across India's financial sector. For regulated entities relying on AI for credit scoring, fraud detection, and cyber defenc

The Karnataka High Court has ruled that a bank cannot freeze your entire bank account merely on the apprehension that investigating agencies may, in future, ask it to block more money. When the police direct a freeze of a specific sum, the bank must restrict the freeze to that amount alone. The decision offers significant relief to account holders who suddenly find every rupee, including salary credits, blocked because of a small disputed transaction flagged somewhere else in

Background: India's Evolving Foreign Investment Framework India's foreign direct investment (FDI) regime has undergone significant evolution over the past decade. The Foreign Exchange Management Act, 1999 (FEMA) and the rules framed under it govern how foreign capital enters the country through non-debt routes such as equity, preference shares, and convertible instruments. The FEMA compliance framework for startups and businesses raising foreign funding has always required ca

The High Court of England and Wales has held diamond merchant Nirav Modi personally liable for approximately $10.7 million (over Rs 100 crore) under a personal guarantee he executed in 2013 in favour of the Bank of India. Justice Simon Tinkler delivered the ruling in a civil action brought by the Bank of India to recover dues arising from credit facilities extended to Firestar Diamond FZE, a company linked to Nirav Modi. Background: The Personal Guarantee In 2013, Nirav Modi

The Reserve Bank of India on June 23, 2026 issued the Master Direction on Trade Receivables Discounting System (TReDS), 2026, consolidating all existing instructions governing TReDS into a single regulatory framework. The direction simplifies MSME onboarding, allows financiers to avail credit guarantee cover, and revises capital requirements for TReDS operators. These changes are expected to significantly expand the reach of receivables financing for small businesses across I

The Securities and Exchange Board of India (SEBI), at its board meeting on June 19, 2026, approved amendments to the SEBI (Mutual Funds) Regulations, 2026, to permit intraday borrowing by mutual fund schemes. This regulatory change addresses a long-standing industry request for flexibility to manage temporary liquidity mismatches that arise from settlement timing differences within a single trading day. What Is Intraday Borrowing and Why It Matters Intraday borrowing refers

The Reserve Bank of India (RBI) has released the Draft Reserve Bank of India (Non-Banking Financial Companies: Compliance Function) Directions, 2026. These directions seek to consolidate and formalise the compliance governance framework for NBFCs into a comprehensive regulatory structure, replacing the earlier piecemeal guidelines scattered across multiple circulars. Why the RBI Is Strengthening NBFC Compliance The NBFC sector in India has grown substantially over the past d