India: Shareholders

The March 2026 edition of Fox & Mandal's newsletter examines the amendments to Press Note 3; RBI’s framework to protect consumers against digital fraud; reclassification of mutual funds; permissibility of selective capital reduction; Draft National Electricity Policy, 2026; NHAI’s framework to fast-track dispute resolution; liability of landowners on default by the developer; and other changes in India's corporate, capital markets, infrastructure, and banking sectors.

Directorial liability is a critical pillar of corporate governance. Directors play a pivotal role in steering an organisation and are bound by responsibilities arising from statutory provisions, constitutional documents, and board mandates.

Traditionally, the buy‑back of shares has been perceived as a mechanism for distributing surplus cash to shareholders, often viewed as an alternative to dividend distribution.