Sebi offers a way over FPI tax rule hurdle
Corporate India may soon find it more difficult to float shell companies or maintain existing incorporated structures that serve little purpose other than tax evasion, money laundering or hiding ownership. In some cases, corporate groups could also face an increased compliance burden even to maintain legitimate structures like holding companies. According to official sources, the government is set to widen the grounds on which a company could be stricken off from the official register. The Corporate Laws (Amendment) Bill, 2026 would inter alia seek to empower the Registrar of Companies to dissolve a company if it hasn’t conducted any “significant accounting transactions” for three years. Non-filing of annual returns and financial statements for two consecutive years could also lead to removal of a firm from the register.
The Competition Commission of India (CCI) has extended the filing window for commitment applications from 45 days to 60 days, giving erring companies additional time to assess the allegations and come out with remedial measures. Under the draft amendments, released for public consultation on Friday, the CCI has provided further relaxation by allowing companies to rectify deficiencies in their commitment applications within 10 working days from the date of return of their incomplete application by the commission. Crucially, the filing fee paid for the original application will be adjusted against the fees payable at the time of refiling, thereby reducing the cost burden on entities. CCI charges a non-refundable filing fees of Rs 2.5 lakh to Rs 50 lakh – depending on the turnover – for every commitment application. Structural Relaxation The antitrust regulator has also proposed increasing the overall timeline for commitment proceedings from 130 to 180 working days, with the possibility of further extensions wherever required. It’s expected that the longer timeline will enable CCI to hold critical consultations, conduct detailed assessment of the commitments offered, and map out exactly how the remedies will be implemented.
As part of the government’s push to strengthen oversight of artificial intelligence (AI) across Corporate India, company boards might soon have to formally disclose their exposure to AI and digital risks under new reporting obligations. According to an official familiar with the discussions, the ministry of corporate affairs (MCA) might expand the disclosure requirements under the Companies Act to ensure that boards take bigger responsibility for AI-related risks such as data privacy, algorithmic bias, IP infringement, operational disruptions and cybersecurity vulnerabilities. “The timing is right for AI-related risks to be part of board-level disclosures, considering the increasing integration of AI into business operations,” the official said. The move comes as the government aims to strengthen the corporate governance norms amid the surge in AI adoption across sectors. The official noted that these disclosures could come in the form of a ‘AI & digital risk statement’ as part of the board’s report. “These may not initially emerge as standalone disclosures, and could instead evolve as an expansion of the existing cybersecurity and digital risk disclosure framework,” he said.
Companies can now deploy a portion of their Corporate Social Responsibility (CSR) budgets through instruments listed on Social Stock Exchanges (SSEs), following a recent amendment by the Ministry of Corporate Affairs (MCA) that is expected to boost funding for non-profit organisations and strengthen India's social financing ecosystem. The MCA has amended Schedule VII of the Companies Act, 2013 to include subscription to Zero Coupon Zero Principal (ZCZP) instruments listed on Social Stock Exchanges as an eligible CSR activity. The amendment, notified on May 27, allows companies to allocate up to 10% of their annual CSR expenditure towards such instruments. The move provides a new avenue for corporates to support not-for-profit organisations (NPOs) registered on Social Stock Exchanges through a regulated and disclosure-based platform. Market participants believe the change could help channel more institutional funding into the social sector while improving transparency and accountability.
