India: Debt Capital Markets

SEBI's new framework for ESG debt securities establishes comprehensive disclosure requirements, third-party verification standards, and alignment with international principles for green bonds, social bonds, sustainability bonds, and sustainability-linked bonds. How will these regulatory requirements reshape India's sustainable finance market and address concerns about greenwashing while mobilizing capital for climate and social development goals?

A May 2026 ruling has clarified that corporate guarantees backed by security qualify as 'financial debt' under Section 5(8) of the Insolvency and Bankruptcy Code. This article analyses the legal reasoning, its implications for resolution applicants, financial creditors, and corporate groups, and the broader impact on insolvency restructuring and credit markets in India.

On 10 August 2026, the Securities and Exchange Board of India (SEBI) issued a consultation paper titled “Review of provisions related to ISIN for Debt Securities” (Consultation Paper), proposing the following key changes.

The Calcutta High Court's ruling in Jainco Projects (India) Limited v. UCO Bank examines critical procedural requirements for SARFAESI appeals, specifically addressing the interplay between One Time Settlement orders and mandatory pre-deposit provisions. This decision clarifies when borrowers can challenge debt recovery actions and what financial obligations must be met before appellate tribunals will hear their cases.

In July 2026, reports emerged that the Reserve Bank of India (RBI) is set to introduce standardised guidelines for property title searches that banks must perform before approving secured loans. The proposed framework is expected to specify a minimum period for title searches, identify essential documents and records to be verified, and outline uniform standards for preparing title search reports. If implemented, it will be the first time India’s banking regulator applies a uniform minimum standard for title due diligence across all scheduled commercial banks.

Ministry of Finance (“MoF”) through notification no. S.O. 3030(E) dated 12.06.2026, notified the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2026 (“NDI Amendment Rules”) to amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (“NDI Rules”).

India's External Commercial Borrowing regulations have undergone significant amendments effective February 16, 2026, introducing substantial changes to pricing caps, end-use restrictions, and borrowing limits.

Reserve Bank of India through circular no. RBI/2026-27/10 A.P. (DIR Series) Circular No. 06 dated 10.04.2026 notified the amendment to the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025.

The Supreme Court has, through a recent decision (2026 INSC 201), now conclusively settled a long-standing controversy under the Insolvency and Bankruptcy Code...