India: Finance and Banking

On July 27, 2026, the Reserve Bank of India (“RBI”) issued four draft amendment directio ns pertaining to Commercial Banks, Small Finance Banks, Non-Banking Financial Companies (“NBFCs”) and All India Finan cial Institutions (“AIFIs”), proposing changes to the respective Securitisation Transactions Directions, 2025 governing each category of regulated entity.

The Reserve Bank of India’s Scale Based Regulation (“SBR”) framework has fundamentally changed the way India regulates its largest non-banking financial companies (“NBFCs”). What began in 2021 as a framework built around size, complexity, interconnectedness, and systemic importance has evolved into a substantially more predictable regime following the RBI’s June 2026 amendments.

The Reserve Bank of India has introduced a new classification system for Non-Banking Financial Companies, fundamentally changing registration requirements based on public funding access, customer interface, and asset size thresholds. These regulatory changes create distinct compliance pathways for different NBFC categories while introducing new rules for group entities and overseas investments.

The NCLT, New Delhi (Special Bench) vide order dated 25.08.2026 in Indiabulls Housing Finance Limited vs. Dr. Subash Chandra approved the repayment plan of INR 6.50 Crores submitted by the Personal Guarantor as against admitted claims of approximately INR 22,006.57 Crores.

Since 2020, the portfolio management services (PMS) industry has grown significantly. The assets under management (AUM) rose from INR 18.07 lakh crore in April 2019 to INR 42.61 lakh crore as on 31 May 2026.

The September 2026 edition of Fox & Mandal's newsletter examines MCA’s FAQs on foreign company registration; proposed amendments to the NBFC credit facilities framework; expansion of OBPP offerings; operationalisation of FDI in inventory-based cross-border e-commerce; Demat 2.0 for tokenisation of corporate bonds; NHAI Policy Circular on real-time blacklisting and non-performance records; and other changes in India's corporate, capital markets, infrastructure, and banking sectors.

Stamp duty is one of the oldest forms of fiscal legislation in India, yet it remains one of the most frequently underestimated sources of risk in corporate and commercial transactions. Parties tend to focus on the substantive commercial terms, tax implications, and regulatory approvals, relegating stamp duty analysis to the execution stage.

The 2026 IBC amendments have fundamentally altered the dynamics of personal guarantor insolvency proceedings by eliminating automatic interim stays. What was once a powerful tool for promoters to halt recovery actions through a simple filing now requires substantive judicial scrutiny, shifting the balance of power back toward creditors and forcing lenders to reassess their enforcement strategies across multiple forums.

SEBI has restored the open market buy-back route through stock exchanges effective August 1, 2026, after suspending it in April 2025. The amendment introduces significant changes including a fixed 66-working-day execution window, ISIN-level freeze on promoter shareholding, mandatory minimum public shareholding compliance, and makes merchant banker appointment discretionary while reallocating their functions among company officers and auditors.

The GST Council, at its 57th meeting held on 8 October 2026, recommended a package of measures intended to facilitate the export of services from India. For enterprises that deliver services through overseas branches, the most consequential recommendation is the proposed removal of the restriction under which a supply between an Indian establishment and its own foreign branch could not qualify as an “export of services”. The Council has also recommended system-based processing of refunds and a wider eligibility for refund of accumulated input tax credit (“ITC”), both of which bear directly on working capital.

In the October 2026 edition of our monthly newsletter "Legalaxy", our team analyses some of the key developments in securities market, banking and finance, labour and consumer protection.

The Court observed that Section 18 of the Limitation Act pertains to getting the benefit of the acknowledgement ade in writing by the opposite party against whom some right is being claimed, however, the same could not be claimed by the person on the basis of an acknowledgement which has been given by the person themselves.