RECENT AMENDMENTS TO THE INDIAN FDI REGIME: ARE THE CHANGES ENOUGH TO BOOST FDI AMIDST GLOBAL TURMOIL?
On May 2, 2026, the Indian government notified two (2) amendments to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (the “NDI Rules”) to align the NDI Rules with the below listed changes introduced in India’s Foreign Direct Investment (“FDI”) policy through Press Notes issued earlier this year: Press Note 1 of 2026, which …
INDIA – ONLINE GAMING UPDATE
India’s Ministry of Electronics and Information Technology (“MeitY”) has recently proposed the establishment of the Online Gaming Authority of India (the “Authority”) under the Promotion and Regulation of Online Gaming Act, 2025, thereby seeking to create a dedicated national regulator for the sector for the first time. Last year, the Indian government prohibited the offering, …
INDIA’S INSURANCE SECTOR REFORMS: KEY HIGHLIGHTS
By: Akil Hirani and Rahul Datta, Majmudar & Partners, India
Primacy of fair market value assessments in intragroup share transfers
Introduction In the recent case of Bray Controls South East Asia Pte Ltd v. Commissioner of Income (International Taxation), W.P.(C) 17911/2024, the Delhi High Court (the “HC”) examined an intragroup transfer of shares and highlighted the importance of a legally compliant valuation report in determining tax liability in India. The petitioner, Bray Controls South East …
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INDIA – RECENT SECURITIES LAW DEVELOPMENTS
Dematerialization of physical securities of shareholders before filing the DRHP The Securities and Exchange Board of India (the “SEBI”) has, recently, approved amendments to the SEBI (Issue Capital and Disclosure Requirements) Regulations, 2018 (the “ICDR Regulations”), and has mandated that selling shareholders, key managerial personnel, senior management, directors, qualified institutional buyers (“QIBs”), employees, shareholders with …
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Supreme Court directs status quo to be maintained in the liquidation of Bhushan Power and Steel Ltd.
Introduction In Kalyani Transco v. M/s Bhushan Power and Steel Ltd. (2025 INSC 621), the Supreme Court (the “SC”) set aside the approved resolution plan (the “Resolution Plan”) and directed liquidation of Bhushan Power and Steel Ltd. (“BPSL”) negating the judgments of the National Company Law Tribunal (the “NCLT”) and the National Company Appellate Law …
The Clean Slate Doctrine and the tax quandary
Background The Clean Slate Doctrine is a key legal principle embedded in the Insolvency and Bankruptcy Code, 2016 (“IBC”), which plays a pivotal role in the corporate insolvency process in India. The doctrine suggests that once a company successfully undergoes the insolvency resolution process and is taken over by a new buyer, the new owner …
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India’s DPIIT Clarifies on Issue of Bonus Shares in Prohibited Sectors
Introduction As per Para 1 of Annexure 3 of India’s consolidated foreign direct investment policy, Indian companies are allowed to freely issue rights/ bonus shares to their existing non-resident shareholders, subject to adherence of sectoral caps and compliance of applicable laws like the Companies Act, 2013.
MCA PROPOSES EXPANSION OF THE FAST TRACK MERGER FRAMEWORK
The Ministry of Corporate Affairs (the “MCA”) has recently issued a public notice inviting comments on the draft Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2025 (the “Draft Amendment Rules”).
The Proposed Structure of India’s New Income-tax Bill, 2025
Background In July 2024, India’s Finance Minister announced that a comprehensive review of the existing Income-tax Act, 1961 (the “IT Act”) would be undertaken with the intent to make the tax law simple and to minimize tax controversy.