India: Finance and Banking

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 RBI has issued the RBI (Commercial Banks – Asset Classification, Provisioning and Income Recognition) Directions 2026 (‘Directions’) to commercial banks, corresponding new banks, and the State Bank of India (‘SBI’) ...

The Securities and Exchange Board of India (“SEBI”) has issued an updated Master Circular consolidating various circulars and regulatory instructions relating to securities market surveillance.

In a significant move to deepen foreign participation in India’s sovereign debt market, the Government of India promulgated the Income-tax (Amendment) Ordinance, 2026 on 5 June 20261, introducing a comprehensive tax exemption for eligible foreign investors investing in Government securities. Effective retrospectively from 1 April 2026, the Ordinance exempts specified income arising from Government securities from withholding tax and long-term capital gains tax, thereby addressing one of the principal tax-related barriers to foreign investment in Indian debt markets.

The Supreme Court, in Anjani Technoplast Ltd. v. Shubh Gautam (2026 INSC 410) ('Anjani Technoplast'), has set aside the admission of a Section 7 petition filed by a decree holder against a solvent and functioning company. A Bench of P.S. Narasimha and Alok Aradhe, JJ. held that a decree holder who has the full machinery of civil execution available to him cannot invoke the insolvency jurisdiction as a substitute for execution proceedings.

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.

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 Calcutta High Court's ruling in Jainco Projects (India) Limited v. UCO Bank examines critical procedural questions surrounding SARFAESI appeals, specifically addressing the requirements for pre-deposit when One Time Settlement orders are involved. This decision has significant implications for borrowers challenging debt recovery actions and banks enforcing security interests under the SARFAESI Act.

Business trusts — Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) — and their unit holders are taxed under a pass-through framework built around Section 223 of the Income-tax Act, 2025 (corresponding to Section 115UA of the erstwhile 1961 Act), read with Schedule V (Table Serial Nos. 3, 4 and 5) of the ITA 2025, which mirror clauses (23FC), (23FCA) and (23FD) of Section 10 of the ITA 1961.

On 24 July 2026, the Central Board of Direct Taxes issued a comprehensive Guidance Note to assist Reporting Crypto-Asset Service Providers in complying with the dedicated reporting framework under the Income-tax Act, 2025 and the Income-tax Rules, 2026 for reporting crypto asset transactions.