India

Friday, 31 October 2025 – CMS INDUSLAW is pleased to announce its mid-year promotions, recognising the continued commitment, leadership, and contribution of its lawyers. The firm is delighted to announce the elevation of Kanika Sachdeva (Capital Markets, Delhi & NCR) and Raunak Singh (Dispute Resolution, Delhi & NCR) to Partner. Kanika Sachdeva, is part of the firm’s Capital Markets practice, based in Delhi & NCR offices. She specialises in equity and debt capital markets transactions and public M&A, advising issuers and underwriters on IPOs, QIPs, private placements, and international issuances. Kanika also specialises in healthcare sector, bringing a strong understanding of regulatory frameworks and a commercially driven approach to client advisory. Raunak Singh is part of the firm’s Dispute Resolution practice, in Delhi & NCR offices. He has extensive experience in a wide range of litigation proceedings before various High Courts and the Delhi District Courts, spanning white-collar crimes, land acquisition, and property-related disputes. He also advises clients on matters under the Prevention of Money Laundering Act, Food Safety and Standards Act, and other regulatory and criminal proceedings, and regularly appears before tribunals such as the Competition Commission of India, National Green Tribunal, and National Consumer Disputes Redressal Commission. Commenting on the promotions, Avimukt Dar and Suneeth Katarki (Founding & Senior Partners) said: “We congratulate our colleagues on their well-deserved promotions and thank them for their continued contribution to the firm’s growth and success.” Along with the promotions at other levels: Nikita Agarwal (Competition, Delhi & NCR) to Counsel; Shivani Singh (Transactions, Delhi & NCR) has been promoted to Principal Associate; and Sakshi Jain (Banking & Finance, Mumbai), Abhishek Chandwani (Banking & Finance, Mumbai), and Aparimita Choudhary (Transactions, Bengaluru) have been promoted to Senior Associate. CMS INDUSLAW congratulates all the promoted colleagues and wishes them continued success in their new roles.

Saraf and Partners advised Goldi Solar Private Limited (“Goldi”) and its promoter, Mr. Ishverbhai Dholakiya, advising them in the INR 1,422 crore fundraise of growth capital from various high-net-worth individuals (HNIs), institutional, strategic, and prominent investors, including Havells India Limited (“Havells”), Ambit Wealth Private Limited, NSFO Ventures LLP, Karmav Real Estate Holdings LLP, SRF Transnational Holdings Limited, Nikhil Kamath, Godwitt Construction Private Limited, and Shahi Exports Private Limited (collectively, the “Investors”), across multiple tranches. The deal not only involved investment but also established a strategic partnership with Havells wherein Goldi has also agreed to install a dedicated module capacity of 1 gigawatt for manufacturing modules under the Havells brand name. The transaction involved advising Goldi on all aspects of the deal including structuring, secretarial assistance, preparing, negotiation and finalising the documentation for the deal, completion of conditions precedents, closing of the deal, managing fund flows, examining anti-trust related requirements in the deal documents in light of the recent FAQs issued by CCI and coordinating with and guiding various Investors. The investment by Havells also triggered a composite CCI approval to be jointly obtained by both Havells and Goldi teams. Our team provided critical insights and recommendations for structuring the documentation and transaction, working with the commercial and business requirements of Goldi while ensuring compliance with the Indian regulatory framework. They played a pivotal role as the company counsel, coordinating and balancing the various requirements of various Investors and participated in several negotiation rounds with each of the Investors and their respective legal counsels. The transaction was led by Navomi Koshy (Partner), along with Rupam Das and Abhishek Jasuja (Associates). Akshayy S Nanda (Partner), along with Tanya Vats (Associate) provided valuable inputs on competition related aspects and led the process for obtaining the necessary composite CCI approval for the transaction.

INTRODUCTION The Reserve Bank of India (“RBI”) has notified the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Seventh Amendment) Regulations, 2025, which came into effect on 6th October 2025. The said amendment, issued by the RBI in exercise of the powers conferred upon it under Foreign Exchange Management Act, 1999 (“FEMA”), seeks to amend certain provisions of the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 (hereinafter referred to as the “Principal Regulations”). KEY AMENDMENTS INTRODUCED Inclusion of IFSC Definition Under Regulation 2 of the Principal Regulations, dealing with definitions, the RBI has introduced a new clause defining “International Financial Services Centre” or “IFSC”. The new clause provides that the term shall have the same meaning as assigned to it under clause (g) of Section 3 of the International Financial Services Centres Authority Act, 2019 (“IFSCA Act”). This insertion creates a formal linkage between FEMA and the IFSCA Act, ensuring consistency across regulatory frameworks. Prior to this, FEMA regulations referred generally to accounts “outside India,” without recognising IFSCs as a permissible jurisdiction despite their legislative establishment in 2019. The amendment thus aligns FEMA’s foreign currency account regime with India’s evolving financial architecture. Substitution of Regulation 5(CA) The principal amendment introduced by the RBI substitutes sub-regulation (CA) of Regulation 5 of the Principal Regulations, which governs the eligibility of persons resident in India, specifically exporters, to open, hold, and maintain foreign currency accounts outside India. The newly substituted provision stipulates that a person resident in India, being an exporter, may open, hold, and maintain a foreign currency account with a bank outside India for the purpose of realisation of the full export value or receipt of advance remittance towards the export of goods or services. The funds held in such account may be utilised by the exporter for making payments towards its imports into India or may be repatriated to India within a period not exceeding: three months, in the case of accounts maintained with banks located in an IFSC; or the end of the next month, in respect of accounts maintained with banks in all other jurisdictions. It is further stipulated that such utilisation or repatriation of funds shall be effected from the date of receipt of the funds, after adjusting for forward commitments, and shall be subject to compliance with the realisation and repatriation requirements prescribed under the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015, as amended from time to time. This is a significant relaxation for IFSC accounts. Earlier, exporters were required to utilise or repatriate funds within one month from the date of receipt, regardless of where the account was maintained. Insertion of Clarificatory Explanation At the end of Regulation 5, the RBI has inserted an explanation stating: “For the purpose of regulation 5, the foreign currency accounts permitted to be opened ‘outside India/abroad’ can also be opened in IFSC.” This clarification removes ambiguity regarding whether IFSCs, which are geographically within India but designated as special financial zones, qualify as “outside India” under FEMA. The explanation explicitly affirms that such accounts are deemed equivalent to foreign currency accounts outside India. COMPARATIVE ANALYSIS OF THE OLD AND NEW REGIMES Under the earlier Regulation 5(CA) of the Principal Regulations, exporters were permitted to open and maintain foreign currency accounts outside India solely for the purpose of realisation of export proceeds and receipt of advance remittances. The utilisation of such funds was restricted to payments towards imports into India or required to be repatriated to India within one month from the date of receipt, subject to compliance with Regulation 9 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015. The 2025 Amendment introduces several material refinements to this framework: Extended Retention Period: Exporters maintaining foreign currency accounts with banks located in IFSC may now retain export proceeds for a period of up to three months, as against the earlier limit of one month. This provides exporters with greater operational flexibility for meeting import obligations and managing foreign exchange exposures. Jurisdictional Distinction: The amended regulation establishes a clear distinction between accounts maintained in IFSCs and those held in other foreign jurisdictions. While the one-month retention period continues to apply to the latter, accounts maintained in IFSCs benefit from a three-month retention window, thereby conferring a regulatory advantage on IFSC-based banking operations. Dynamic Cross-Referencing: The earlier regulation referred specifically to Regulation 9 of the Export of Goods and Services Regulations, 2015. The amended version, however, makes a dynamic reference to the said regulations “as amended from time to time.” This change obviates the need for future technical amendments each time the underlying export regulations are revised, ensuring regulatory continuity. Legal Recognition of IFSCs: The insertion of an Explanation at the end of Regulation 5 formally integrates IFSCs within the ambit of FEMA’s foreign currency account framework. For this purpose, IFSCs are now deemed equivalent to jurisdictions “outside India,” thereby resolving prior interpretive ambiguities. LEGAL AND POLICY RATIONALE The amendment reflects a confluence of economic and legal objectives. From a policy standpoint, it represents a continuation of India’s strategic efforts to enhance the global competitiveness of its IFSCs, particularly the Gujarat International Finance Tec-City (GIFT City). By permitting exporters to retain foreign currency proceeds for an extended period in IFSC based accounts, the RBI seeks to incentivise the use of onshore IFSC banks rather than overseas institutions. This measure is expected to deepen India’s domestic foreign exchange ecosystem while ensuring that such transactions remain within the ambit of Indian regulatory supervision. From a legal standpoint, the clarification that IFSCs are to be regarded as “outside India” for the purposes of the FEMA effectively resolves a long standing interpretive gap. While FEMA has historically distinguished between transactions “in India” and “outside India,” IFSCs occupy a unique hybrid position, being geographically located within India but functionally treated as offshore jurisdictions for certain financial activities. The amendment explicitly acknowledges this duality, thereby eliminating potential ambiguity and compliance uncertainty. Furthermore, the extension of the permissible retention period for export proceeds, from one month to three months in the case of IFSC accounts, aligns India’s export regulatory framework more closely with prevailing international trade and settlement practices. This modification facilitates improved cashflow management for exporters without compromising the prudential safeguards embedded within FEMA’s foreign exchange control regime. CONCLUSION The amendment to the Principal Regulations represents a timely and forward looking reform. It not only integrates IFSCs into FEMA’s operational framework but also enhances the ease of foreign exchange management for exporters. By extending the permissible retention period for export proceeds in IFSC based accounts and clarifying their legal status, the RBI has effectively aligned regulatory clarity with broader economic policy objectives. This reform reflects a balanced and prudent approach, facilitating trade efficiency, strengthening the IFSC ecosystem, and preserving the integrity and stability of India’s foreign exchange management framework. Co-authored by Neeraj Vyas, Partner ([email protected]) and Mehak Chadha, Associate ([email protected]).

We are pleased to share that Argus Partners has advised Vedantu (an edtech platform) on raising USD 11 million in fresh capital from ABC World Asia, Accel India and Omidyar Network. Vedantu has long been a pioneer in Indian edtech - reimagining how students learn and teachers teach. The company has been expanding its offline presence alongside online tutoring, now operating over 100 hybrid centres and onboarding franchise partners. The team at Argus Partners advising Vedantu consisted of Anindya Ghosh, Anantha Krishnan Iyer (Partners), Khushi Bhardwaj and Nivrithi Kumar (Associates). Read more at: The Economic Times, MoneyControl, LiveMint, YourStory, INC42, VCCircle.