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.

SEBI, by way of Circular dated 14.08.2026 issued modifications in the regulatory framework for Online Bond Platform Providers (“OBPPs”), including ease-of doing-business measures (“OBPP Circular”). The OBPP Circular amends Chapter XXI of the SEBI Master Circular on issue and listing of non-convertible securities, Securitised Debt Instruments, Security Receipts, MDS and Commercial paper dated 15.10.2025 (“NCS Master Circular”).

The Securities and Exchange Board of India (“SEBI”), by Circular dated 11.08.2026 (“ILMDS Amendment Circular”), has notified amendments to the SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 (“ILMDS Regulation”) in respect of certain operational aspects for municipal debt securities (“MDS”).

SEBI has floated a consultation paper dated August 10, 2026, proposing two distinct sets of amendments affecting issuers of privately placed, listed non-convertible debt securities .

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.

SEBI, by way of Circular dated 14.08.2026 issued modifications in the regulatory framework for Online Bond Platform Providers (“OBPPs”), including ease-of doing-business measures (“OBPP Circular”). The OBPP Circular amends Chapter XXI of the SEBI Master Circular on issue and listing of non-convertible securities, Securitised Debt Instruments, Security Receipts, MDS and Commercial paper dated 15.10.2025 (“NCS Master Circular”).

The Securities and Exchange Board of India (“SEBI”), by Circular dated 11.08.2026 (“ILMDS Amendment Circular”), has notified amendments to the SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 (“ILMDS Regulation”) in respect of certain operational aspects for municipal debt securities (“MDS”).

With a view to mitigate the impact of external economic headwinds, provide stability to the domestic economy and support key sectors of strategic importance, the Government has introduced the Taxation and Other Laws (Amendment) Bill, 2026 (‘the Bill’) [in supersession of the earlier Income Tax (Amendment) Ordinance, 2026]. The Bill, as passed by the Lok Sabha on 6.08.2026, proposes amendments, inter-alia, to the Income-tax Act, 2025 (‘2025 Act’).