India: Accounting Standards

Compulsorily Convertible Preference Shares (“CCPS”) are frequently used by companies to raise capital. Whether a mere accounting reclassification of CCPS from borrowings to share capital and securities premium as mandated under Indian Accounting Standards (‘Ind-AS’)— without receipt of any fresh consideration—can trigger taxation under section 56(2)(viib) of the Income-tax Act, 1961 (“the Act”)?

In the September edition of our monthly newsletter “Legalaxy”, our team analyses some of the key developments in securities market, banking and finance, labour, foreign investment and maritime

The Insolvency and Bankruptcy Code, 2016 (“IBC”)1 represents a watershed in India’s corporate insolvency framework. It seeks to consolidate laws relating to insolvency and ensure time-bound resolution of distressed entities while protecting the value of assets and promoting equitable treatment of creditors. Parallel to the IBC regime, the Reserve Bank of India (“RBI”) regulates the manner in which banks and financial institutions treat non-performing assets in their books of account.

The Reserve Bank of India has introduced amendments to the income recognition, asset classification and provisioning framework for Non-Banking Financial Companies, specifically addressing how Default Loss Guarantees...

On March 23, 2026, the Union Finance Minister introduced the Corporate Laws (Amendment) Bill (“Bill”), 2026 in the Lok Sabha, which proposes various amendments (“Proposed Amendments”) to the Companies Act, 2013 (“CA 2013”) and the Limited Liability Partnership Act, 2008. The Bill has been referred to a Joint Parliamentary Committee for further scrutiny.

India's insurance sector underwent transformative regulatory changes in Q1 2026, with the government increasing foreign direct investment limits to 100% and IRDAI implementing sweeping modernization measures. These developments signal unprecedented opportunities for international stakeholders while introducing new compliance frameworks for domestic players navigating the evolving regulatory landscape.

It is codified in Section 145(1) of the Income-tax Act, 1961 (‘IT Act'), that income under the head ‘Profits or Gains from...

In the June edition of our monthly newsletter "Legalaxy", our team analyses some of the key developments in securities market, corporate affairs, banking and finance, labour, environment and consumer affairs.

On May 30, 2025, the MCA in India has via notification G.S.R. 357(E) introduced significant amendments to the Companies (Accounts) Rules, 2014, through the Companies (Accounts) Second Amendment Rules, 2025, effective from July 14, 2025.