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ARTICLE · 27 MAY 2026

Recent Developments In India's Corporate & Commercial Laws – May 2026

Fox & Mandal
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The May 2026 edition of Fox & Mandal's newsletter examines the net settlement mechanism for FPIs; revised registration norms for NBFCs; SEBI’s amended disqualification norms for intermediary; Draft National Water Metro Policy, 2026; FEM (Authorised Persons) Regulations, 2026; proposed alignment of the securitisation framework with RBI norms; and other changes in India's corporate, capital markets, infrastructure, and banking sectors

IndiaCorporate/Commercial Law
Arindam Sarkar
Arindam Sarkar
Bhargav Mitra
Bhargav Mitra
Saurav Bhaumik
Saurav Bhaumik
Anwesha Sinha
Anwesha Sinha
Abhimanyu Kakrania
Abhimanyu Kakrania
Aman Maini
Aman Maini
Deeksha Dabas
Deeksha Dabas
Shrinwantu Choudhury
Shrinwantu Choudhury
Ashutosh Gupta
Ashutosh Gupta
+6 more
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Indian economy | May 2026 

Snapshot of key indicators 

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SEBI streamlines settlement mechanism for FPIs

Circular on FPI net settlement of funds

Until now, Foreign Portfolio Investors (FPIs) were required to settle each transaction individually on a gross basis. This meant the full value of each purchase had to be funded upfront, irrespective of any sale proceeds that the FPI was simultaneously receiving on the same day. In practice, this locked up large amounts of capital for short periods, increased the need for forex conversions, and raised the overall cost of operating in Indian markets. Addressing this concern, the Securities and Exchange Board of India (SEBI) introduced the concept of net settlement for funds on a limited and calibrated basis, bringing Indian market practice in line with global standards already followed in the United States (via the DTCC system) and Europe (under CSDR regulations). The change shall take effect from 31 December 2026.

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