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 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.

Foreign Portfolio Investors (FPIs) form a critical channel for overseas capital into India’s equity, debt, and increasingly commodity markets

Recovering an unpaid invoice from an Indian company need not mean years in an ordinary civil suit. Indian law offers several faster routes: insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC), summary procedures in the commercial courts, a statutory regime for micro and small suppliers, and arbitration. Foreign creditors have two further options: executing a judgment from their home court, or enforcing a foreign arbitral award. The right choice turns on three questions. Is the debt genuinely disputed? Where are the debtor’s assets? What does the contract say?

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.

Getting a SEBI registration is a milestone for any Alternative Investment Fund (“AIF”). It is also where the real compliance work begins. Once the fund becomes operational, the regulatory focus shifts to how its obligations are implemented in practice. The SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) require detailed policies and procedures to govern fund decisions.

The Reserve Bank of India has withdrawn seven legacy FEMA circulars as part of its ongoing rationalization initiative, affecting cross-border transactions, ECB frameworks, and foreign exchange compliance. This development underscores the importance of relying on current regulations rather than historical circulars when structuring international transactions.

The Reserve Bank of India has introduced sweeping reforms to cross-border trade regulations through the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, fundamentally reshaping payment timelines, reporting requirements, and compliance frameworks for businesses engaged in international transactions.