Banking & Finance

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

When an investor dies, their shares and mutual fund units do not simply disappear; they pass to the surviving holders, the nominee, or the legal heirs through a process called transmission. Transmission is different from a transfer, because it happens by operation of law rather than by a voluntary sale. This guide explains how to transmit shares and mutual fund holdings after death, what documents are needed, and how the process differs depending on whether a nominee was name

The Supreme Court has held that the mere surrender of an insured vehicle by its owner to a financier does not entitle the financier to claim insurance proceeds if the vehicle is later lost or stolen. A bench of Justice Sandeep Mehta and Justice Vijay Bishnoi declined to interfere with the findings of the National Consumer Disputes Redressal Commission, which had ruled in favour of the insurer, holding that there was no privity of contract between the financier and the insuran

The difference between a nominee and a legal heir is one of the most misunderstood points in Indian law, and it causes real disputes when a family member dies. Many people assume that the person named as nominee on a bank account, a mutual fund or a set of shares becomes the owner of that asset. In most cases, that assumption is wrong. A nominee is, as a rule, only a custodian who receives the asset to hold it for those legally entitled to inherit. Knowing the distinction hel

What happens if you cannot pay your loan EMI in India? Missing an instalment does not make you a criminal. A loan default is, in the first place, a civil matter between you and the lender, and you retain important rights even while you are in arrears. Understanding those rights helps you deal with the bank or NBFC calmly, avoid harassment, and protect your assets and credit record. This guide explains the consequences of default, the limits the Reserve Bank of India places on

Can a person facing insolvency proceedings use the statutory moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC) to pause a cheque bounce prosecution under Section 138 of the Negotiable Instruments Act, 1881? On 27 May 2026, the Supreme Court flagged a genuine conflict in its own precedents on this question and referred the matter to a larger bench in Dineshchand Surana v UCO Bank. For anyone navigating both a loan default and a cheque case at the same time, the i

Your CIBIL credit score is one of the most important numbers in your financial life, and knowing how to check and improve it can decide whether a bank approves your loan or credit card and at what interest rate. A credit score in India is a three-digit number, usually ranging from 300 to 900, that reflects how reliably you have repaid past borrowings. This guide explains how the system works, how to obtain your report for free, how to correct mistakes, and the rights you have

The Securities and Exchange Board of India (SEBI) operates the SCORES (SEBI Complaint Redress System) portal to handle investor complaints against listed companies, intermediaries, and market infrastructure institutions. SCORES 2.0, launched in 2023, introduced an auto-routing mechanism and a review process. Investors who have grievances against brokers, depository participants, mutual funds, listed companies, or other SEBI-registered entities can file complaints through this

On 5 June 2026, the Reserve Bank of India announced a significant liberalisation of the rules governing how Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can invest in listed Indian companies. The headline change doubles the individual equity investment limit for an NRI or OCI in a single listed company from 5 percent to 10 percent of the company's paid-up capital, and raises the aggregate ceiling for all such investors taken together. The move, announced

The Bombay High Court has granted interim relief to industrialist Anil Ambani in a case involving alleged undisclosed foreign assets worth over Rs 814 crore and a tax liability exceeding Rs 420 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The court has halted all coercive action, including prosecution and penalties, while admitting Ambani's writ petition challenging the constitutional validity of certain provisions of th