Banking & Finance

The Securities and Exchange Board of India notified the SEBI (Listing Obligations and Disclosure Requirements) Amendment Regulations, 2026, which introduce several changes to corporate governance and disclosure requirements for listed entities. These amendments take effect immediately and cover capital raising, appointment of independent directors, and more. Companies must act now to ensure compliance. Here's what you need to know. Changes to Independent Director Eligibility

The Securities and Exchange Board of India has announced a one-time relaxation from the applicability of penal provisions for listed entities that are unable to comply with minimum public shareholding requirements between April 1, 2026 and September 30, 2026. The decision, announced in early April 2026, comes in response to representations from industry bodies highlighting the difficulties faced by listed companies in diluting promoter holdings during a period of significant

The Securities and Exchange Board of India has released a consultation paper proposing the reintroduction of open market share buybacks through stock exchanges. The paper, published on April 2, 2026, invites public comments until April 23, 2026. This move follows the discontinuation of the open market buyback route from April 1, 2025, which was prompted by concerns over unequal shareholder participation and tax-induced inequity. With the taxation framework for buybacks having

The Reserve Bank of India has notified the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026, which consolidate and restructure the regulatory framework governing External Commercial Borrowings (ECBs) in India. The amendment, which came into effect in February 2026, brings together provisions that were previously scattered across the FEM (Borrowing and Lending) Regulations, 2018, RBI Master Directions on ECBs, and various frequently asked

The Reserve Bank of India has notified the Foreign Exchange Management (Guarantees) Regulations, 2026, replacing the Foreign Exchange Management (Guarantees) Regulations, 2000. The new framework comprehensively overhauls the regulatory regime governing cross-border guarantees involving persons resident in India. Issued under the Foreign Exchange Management Act, 1999, the 2026 regulations introduce a principle-based, eligibility-driven framework that shifts away from the earli

The Reserve Bank of India has introduced a new regulatory classification for non-banking financial companies that neither accept public funds nor maintain a customer interface and hold assets below Rs 1,000 crore. Termed "Unregistered Type I NBFCs," these entities are now exempt from the requirement of registration under Section 45-IA of the Reserve Bank of India Act, 1934, with effect from April 1, 2026. The move is part of RBI's broader recalibration of NBFC regulation unde

The Securities and Exchange Board of India notified the SEBI (Mutual Funds) Regulations, 2026, effective from April 1, 2026, replacing the earlier SEBI (Mutual Funds) Regulations, 1996. Alongside, SEBI released a comprehensive Master Circular dated March 20, 2026, consolidating all existing circulars, guidelines, and directives applicable to mutual funds into a single reference document. Together, these instruments create a modernised regulatory framework for India's rapidly

The Reserve Bank of India issued the Commercial Banks Credit Facilities Amendment Directions, 2026, which came into force on April 1, 2026. These directions introduce a dedicated framework governing how commercial banks may extend credit facilities to capital market intermediaries, including stock brokers, clearing members, custodians, and market makers. The framework imposes strict collateral requirements and lending conditions designed to reduce systemic risk at the interse

From April 1, 2026, the Securities and Exchange Board of India's new algorithmic trading framework has become fully mandatory for all stock brokers operating in India. The framework brings retail algo trading under formal regulatory oversight for the first time, requiring brokers to register all algorithmic strategies, implement pre-trade risk controls, and maintain detailed audit trails. As algorithmic orders now account for a substantial share of equity market volumes in In

The Union Budget 2026 announced a comprehensive review of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (NDI Rules), which govern the inflow and regulation of foreign direct investment (FDI) in India. The NDI Rules, notified under the Foreign Exchange Management Act, 1999 (FEMA), prescribe the entry routes, sectoral caps, pricing guidelines, and compliance requirements for foreign investment in equity instruments of Indian companies. A comprehensive revie

Know Your Customer (KYC) compliance remains one of the most operationally intensive regulatory obligations for banks, non-banking financial companies (NBFCs), and fintech platforms in India. The Reserve Bank of India's Master Direction on KYC, originally issued in 2016 and subsequently amended multiple times, has been further updated in 2026 to address emerging risks in digital onboarding, beneficial ownership identification, and ongoing due diligence for high-risk customers.

Effective 1 April 2026, the Securities and Exchange Board of India (SEBI) has implemented a revised margin framework for Futures and Options (F&O) trading that significantly changes the collateral requirements for market participants. Under the new rules, traders must maintain a minimum of 50 percent of their total margin collateral in the form of cash or cash equivalents such as bank guarantees. Simultaneously, the Reserve Bank of India has introduced stricter rules on broke

The Reserve Bank of India has notified the Reserve Bank of India (Non-Banking Financial Companies, Internal Ombudsman) Directions, 2026, mandating that specified categories of NBFCs appoint an Internal Ombudsman (IO) to handle customer complaints that remain unresolved at the first level of the company's grievance redressal mechanism. This builds on RBI's broader consumer protection architecture, which already requires scheduled commercial banks to maintain an Internal Ombuds

Effective 1 April 2026, the Reserve Bank of India has doubled the collateral-free loan limit for Micro and Small Enterprises (MSEs) from Rs 10 lakh to Rs 20 lakh. This change, implemented through an amendment to RBI's Master Directions on lending to MSEs, is part of a broader policy push to improve credit access for India's smallest businesses without burdening them with the requirement to pledge assets as security. For MSE owners, banks, non-banking financial companies (NBFC

India's commitment to international commercial arbitration depends on predictable enforcement of foreign arbitral awards. Yet the threshold for refusing enforcement based on public policy has long remained uncertain, creating risk for award-creditors and ambiguity for courts. In March 2026, the Supreme Court clarified this critical issue: a foreign arbitral award cannot be challenged on public policy grounds in India if the seat court has already decisively ruled on that issu