India: Compliance

As India's ESG disclosure requirements intensify and institutional investors demand climate accountability, a fundamental tension emerges between corporate dividend distributions and the capital needed for decarbonization. This analysis examines whether Indian boards can continue prioritizing shareholder payouts while deferring transition investments, and proposes a governance framework that treats carbon expenditure as a solvency test rather than an optional allocation.

If your company is required to spend on Corporate Social Responsibility (“CSR”) under the Companies Act, 2013 (“Act”), a new and structured route is now available, effective from May 27, 2026. The Ministry of Corporate Affairs (“MCA”) has amended the Companies (Corporate Social Responsibility Policy) Rules, 2014 (“CSR Rules”) to permit companies to direct a portion of their CSR budget through the Social Stock Exchange (“SSE”) via Zero Coupon Zero Principal (“ZCZP”) instruments. This update is of direct relevance to compliance teams, CSR committees, company secretaries, and in-house counsel.

Before regulations were put in place, India’s stock market was much less transparent and often seemed like the Wild West. Traders would frequently use the phrase “Bhaav Bada Hai”, which hinted that stock prices were being artificially inflated, usually for personal profit. It wasn’t just a casual remark about market trends; it was a quiet signal that trades were being made to manipulate prices, pushing them far beyond what was actually fair or realistic.

India's Reserve Bank has fundamentally restructured how cross-border guarantees are regulated under FEMA, shifting from transaction-specific permissions to a principles-based framework that tracks guarantees throughout their entire lifecycle.

The Securities and Exchange Board of India (SEBI) issued a consultation paper on 23 July 2026 (Consultation Paper). The Consultation Paper proposes a comprehensive review of the SEBI (Portfolio Managers) Regulations, 2020 (PMS Regulations).

The Court held that mere subsistence of the underlying contract in cases where the debt had already matured would not lend a new lease of life to such debts in case they already stood time-barred.

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DSK Legal's August 2026 newsletter delivers comprehensive updates across multiple practice areas including capital markets, competition law, dispute resolution, employment law, infrastructure, international trade, media and entertainment, restructuring, sports and gaming, technology law, and white collar crime. The newsletter provides expert analysis and regulatory insights to help legal professionals and businesses navigate the evolving legal landscape across these diverse sectors.

Most of the commentary on the India–UK Comprehensive Economic and Trade Agreement (CETA) has stayed focused on cars, textiles, and services. Chemicals rarely make the headline list. India already has real capability in specialty chemicals, agrochemicals, pharmaceutical intermediates, dyes, and pigments, and the UK brings a mature chemicals and life-sciences ecosystem with genuine demand on the other side.