Banking & Finance

The Reserve Bank of India's Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, is scheduled to meet from June 3 to June 5, 2026, with the final policy decision expected on the morning of June 5. The repo rate currently stands at 5.25 percent following a cumulative 125 basis points of rate cuts since February 2025. Markets are closely watching whether the MPC will hold rates steady for a third consecutive meeting or deliver another cut amid global uncertaint

The Securities and Exchange Board of India (SEBI) has issued revised nomination rules for demat accounts and mutual fund folios, effective from September 1, 2026. Under the new framework, single-holder investors opening new demat accounts or mutual fund folios must either nominate a beneficiary or formally opt out of nomination. The changes are designed to reduce unclaimed financial assets in India, simplify the nomination process, and give investors more flexibility. Here is

The Supreme Court has ruled that a party which participates in arbitration proceedings without objecting to the extension of the arbitrator mandate cannot later challenge the resulting award on the ground that the mandate had expired. The decision, arising from a dispute between the Gujarat Water Supply and Sewerage Board and Saryu Plastics Pvt. Ltd., reinforces the principle of estoppel in arbitration law and sends a clear message to litigants who remain silent during procee

The Securities Appellate Tribunal (SAT) has set aside penalties imposed by the Securities and Exchange Board of India (SEBI) in the Shree Global Tradefin Limited matter, delivering sharp criticism of the regulator for inordinate delay in adjudicating proceedings. The Tribunal held that SEBI's delay of over a decade in completing adjudication proceedings violated principles of natural justice and rendered the penalty order unsustainable. The decision adds to a growing body of

The Reserve Bank of India has notified amendments to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, giving effect to the Insurance Laws (Amendment) Act, 2025, which raised the foreign direct investment (FDI) cap in Indian insurance companies from 74 per cent to 100 per cent. The FEMA amendments, notified in March 2026, prescribe the conditions under which 100 per cent FDI is permitted and establish a new regulatory framework for fully foreign-owned insura

Cryptocurrency regulation in India has evolved significantly by 2026, with a multi-regulator framework that treats digital assets as a distinct asset class subject to heavy taxation, strict reporting requirements, and regulatory oversight from both SEBI and the RBI. Buying, selling, and holding crypto is legal in India, but the government treats these assets as high-risk investments rather than money or currency. They fall under a regulatory category known as Virtual Digital

In a landmark regulatory shift, the Reserve Bank of India on 13 February 2026 amended its capital market exposure framework to allow Indian banks to provide acquisition financing for listed mergers and acquisitions. Effective from 1 April 2026, the RBI (Commercial Banks: Credit Facilities) Amendment Directions, 2026 permit banks to finance up to 75% of the acquisition value, opening the door to leveraged buyouts (LBOs) and management buyouts (MBOs) that were previously constr

The Securities and Exchange Board of India (SEBI) has rejected preliminary objections raised by Bajaj Hindusthan Sugar Limited and its promoters in an investigation into alleged fund diversion worth hundreds of crores. The probe concerns the alleged diversion of company funds through Ojas Industries and Bajaj Power Generation, along with non-disclosure of related party transactions (RPTs). SEBI overruled the company's contention that the regulator lacked jurisdiction to inves

The Reserve Bank of India (RBI) issued a press release on May 4, 2026, cautioning the public against misleading campaigns that promise loan waivers or debt cancellation. The central bank labelled these campaigns as "false and misleading" and warned that individuals and entities involved in such schemes could face legal action under applicable laws. This advisory comes amid a surge in social media posts and WhatsApp messages claiming that the government or RBI has approved bla

The Reserve Bank of India (Co-Lending Arrangements) Directions, 2025, which came into effect on January 1, 2026, replace the earlier 2020 co-lending circular and establish a comprehensive regulatory framework for joint lending by banks and Non-Banking Financial Companies. The new framework standardises the operational structure of co-lending arrangements (CLAs), introduces clearer borrower protection norms, and sets minimum retention requirements for both lending partners. Th

On May 5, 2026, the Securities and Exchange Board of India published the first official list of 48 Significant Indices under the SEBI (Index Providers) Regulations, 2024. Index providers administering these indices, including NSE Indices, BSE, and CRISIL, must apply for SEBI registration within six months, by November 5, 2026. This marks a significant step in bringing index governance under formal regulatory oversight in India, aligning with global standards for benchmark adm

From July 1, 2026, the Reserve Bank of India is implementing a significant reclassification of Non-Banking Financial Companies (NBFCs) into two broad categories: Type I NBFCs (entities that do not access public funds and do not have a customer interface) and Type II NBFCs (entities that raise funds from the public, accept deposits where permitted, or interact directly with retail customers). This reclassification simplifies the regulatory architecture while introducing propor

The Securities and Exchange Board of India (SEBI) has introduced a revised Annual Activity Report (AAR) framework requiring all registered market intermediaries to submit comprehensive activity reports for the financial year 2025-26 by 31 May 2026. This is the first reporting cycle under the new framework, which mandates detailed disclosure of business activities, compliance status, grievance redressal metrics, investor education initiatives, and risk management practices. Th

The Securities and Exchange Board of India has revised the stress testing and Settlement Guarantee Fund (SGF) coverage norms applicable to clearing corporations operating in the commodity derivatives segment. The revised framework, effective from early 2026, reduces the Z-score used for historical stress testing from 10 to 5, revises the coverage requirement to account for the simultaneous default of the top three clearing members (the Cover 3 standard), and provides regulato

The Reserve Bank of India has introduced significant changes to the reporting framework for the Liberalised Remittance Scheme (LRS), effective from 1 January 2026. Under the revised framework, Authorised Dealer Category-II (AD Cat-II) banks and full-fledged money changers (FFMCs) are now required to file LRS transaction details directly on the Centralised Information Management System (CIMS), the RBI's next-generation data reporting platform that replaces the older XBRL-based

The Reserve Bank of India has introduced two regulatory changes in 2026 that directly affect individual bank customers across the country. First, Video-based Customer Identification Process (V-CIP) has been pushed as a standard onboarding option, enabling customers to complete their Know Your Customer (KYC) requirements through a live video call without visiting a bank branch. Second, the RBI has tightened the rules on dormant and inactive accounts, with banks now empowered t

India International Disputes Week 2026, held from 7 to 11 March 2026 in Chandigarh, marked a significant milestone in India's effort to position itself as a credible destination for international commercial arbitration. The centrepiece of the event was the formal launch of the Chandigarh International Arbitration Centre (CIAC), adding a new institutional arbitration platform to India's growing dispute resolution infrastructure. The event brought together judges, arbitration p

The Securities and Exchange Board of India amended the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 with effect from 16 March 2026. The ICDR Amendment Regulations 2026 address two critical areas of the IPO framework: the enforceability of lock-in provisions for pledged pre-issue shares, and the integration of a draft abridged prospectus into the IPO documentation process. These changes affect issuers, merchant bankers, depositories, and retail investo

The Securities and Exchange Board of India notified the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2026 on 20 January 2026. These amendments, which came into force on the date of their publication in the Official Gazette, introduce significant changes to disclosure norms, board meeting requirements, material subsidiary definitions, and the regulatory treatment of High Value Debt Listed Entities (HVDLEs). For listed companies, compliance of

The Reserve Bank of India issued the Commercial Banks Credit Facilities Amendment Directions, 2026 on February 13, 2026, comprehensively revising the regulatory framework governing bank lending for acquisitions, loans against securities, and credit facilities to capital market intermediaries. The directions came into force on April 1, 2026. The amendments introduce a new Chapter XIII A dedicated to credit facilities for capital market intermediaries (CMIs), covering stock bro