Japan Newsletter (April-June 2026)

The ties between India and Japan showcase longstanding special strategic and global partnership with growing emphasis on economic cooperation, resilient supply chains and technology-led growth. Over the course of 2026, the bilateral relationship has seen sustained engagement across a broad range of sectors, with both governments reaffirming their commitment to fostering a stable and predictable environment for investment, innovation and long-term commercial collaboration.

As Japanese businesses expand their presence in India and Indian companies deepen their engagement with Japan, the legal and regulatory landscape assumes increasing importance in enabling investment, managing compliance and supporting commercial transactions. The investment partnership has also continued to evolve, supported by sustained government engagement and a shared commitment to facilitating cross-border business. As Japanese businesses continue to expand their presence in India and explore opportunities across manufacturing, infrastructure, technology and other strategic sectors, India's regulatory landscape continues to develop in step with these ambitions.

In this newsletter, we highlight key legal and regulatory developments in India over this quarter of 2026.

セクションA：セクター別同動向

(1) 石炭地下ガス化計画の策定に関するガイドライン

インド石炭省は、石炭地下ガス化（UCG）における採掘計画の策定および承認に関するガイドラインを公表しました。本ガイドラインは、採掘計画の事前承認を義務付けるとともに、地下ガス化操業における安全対策を規定し、さらに段階的な閉山および最終的な閉山の両方における閉山計画の策定を求めています。また、プロジェクトの推進者が閉山や閉山後の義務に伴う財務負担を軽減できるよう、エスクロー勘定から閉山費用に対する払い戻しを請求することを認めています。

(2) 地表石炭・褐炭ガス化プロジェクト促進計画（石炭ガス化スキーム）

連邦内閣は、石炭および褐炭のガス化を加速させ、2030年までに1億トンの石炭をガス化するという国家目標を達成するため、3,750億ルピーの財政支出を伴う「石炭ガス化スキーム」を承認しました。本スキームでは、競争入札プロセスを通じて選定された対象プロジェクトに対し、プラントおよび機械設備コストの最大20%に相当する財政的補助を提供します。

(3) 2026年国家海事委員会規則の通知

港湾・海運・水路省は、2025年商船法に基づく国家海事委員会の機能を規定する枠組みを改定し、「2026年国家海事委員会規則」を通知しました。これにより、事前通知を行った上での定期的な理事会の開催や、同委員会の固定任期制での設置が規定され、インドの海事ガバナンス体制の近代化と強化が図られます。

(4) 中央自動車規則の改正

「2026年中央自動車規則」の改正により、車検および点検の枠組みに見直しが行われました。新規則では、車両が180日を超えて不適合の状態にある場合、廃車として分類することを規定しています。また、自動検査ステーションを運営するための適格基準を改定し、位置情報（ジオタグ）付きのビデオ記録を活用することで、車両の適合性検査の厳格化を図っています。

セクションB：総合

(1) 送金処理迅速化に向けたクロスボーダー着金送金ガイドライン

インド準備銀行（RBI）は、海外からの着金送金の処理を迅速化するための措置を導入しました。新たな枠組みでは、着金メッセージの受信後ただちに顧客へ通知すること、ノストロ勘定への入金をほぼリアルタイムで照合すること、および受取人の口座へ適時に入金することを義務付けています。また銀行は、居住者である個人向けの書類手続きや取引追跡を簡素化するため、ストレート・スルー・プロセッシング（STP）やデジタルインターフェースを導入することができます。

(2) RBIによる売掛債権電子割引制度（TReDS）に関する新方針の発表

インド準備銀行（RBI）は、「2026年売掛債権電子割引制度（TReDS）方針」を発表し、TReDSプラットフォームを規定する規制枠組みを統合しました。本方針では、最低自己資本要件を規定し、中小零細企業（MSMEs）の新規登録手続きを簡素化したほか、取引に対する信用保証や保険の適用を認め、金融機関による債権の再割引を可能にしています。これにより決済メカニズムを合理化し、従来の細分化されていた規制体制を一新しました。

(3) RBIによる非居住個人向け外国ポートフォリオ投資（FPI）の自由化

インド準備銀行（RBI）は、外国ポートフォリオ投資（FPI）の枠組みを緩和し、非居住インド人（NRI）やインド海外市民（OCI）に限らず、インド国外に居住するすべての個人が、2019年外国為替管理法（FEMA）規則の付表IIIに基づいて上場インド企業へ投資することを認めました。本方針では、本国送金可能なインドルピー口座について規定しているほか、報告・監視規定を定め、公認ディーラー銀行に対するコンプライアンス要件を設定しています。

(4) 仲裁の敗訴当事者による仲裁調停法第9条に基づく暫定処分申請の容認

最高裁判所は、仲裁手続きの敗訴当事者であっても、仲裁判断の提示後の段階において、1996年仲裁調停法第9条に基づく暫定的な保全処分を申請できることを明確にしました。ただし、敗訴当事者に対する保全処分の認められる基準は通常よりも高く設定されます。本判決は、同法第9条における「当事者（a party）」という文言を解釈したものであり、同条の定義は暫定処分の申請にあたって勝訴・敗訴の当事者を区別していないと判示しました。この裁定により、第9条の適用範囲と、仲裁手続きの結果にかかわらず、仲裁判断後に暫定処分の利用が可能であることが明確になりました。

(5) 瑕疵のある仲裁判断の修正におけるインド憲法の適用

最高裁判所は、1996年仲裁調停法第34条および第37条に基づく管轄権を行使する裁判所は、原則として同法に明記された取消事由に限定されるものの、最高裁判所は完全な正義を担保するために、適切な事案において憲法第142条に基づく裁量権を行使し、仲裁判断を修正することができるとの判断を示しました。

(6) 労働法典に基づく中央規則の通知

労働雇用省は、4つの労働法典、すなわち「2019年賃金法典」、「2020年社会保障法典」、「2020年労使関係法典」、および「2020年労働安全・衛生・労働条件法典」に基づく実施規則を通知しました。通知された規則は、労働時間、一定の保護措置を条件とした女性の雇用、賃金の決定、社会保障給付、労働組合の承認、処理制度、ならびに解雇、人員削減、および事業所の閉鎖に関する手続きなどの分野を網羅する、包括的な枠組みを規定しています。

(7) 非負債型商品規則の改正

「2026年外国為替管理（非負債型商品）（第二次改正）規則」により、保険会社および保険仲介業者における外資出資比率の上限が撤廃され、自動認可ルートによる最大100%の対内直接投資が可能となりました。ただし、インド生命保険公社（LIC）に対する20%の投資上限は維持されます。また、本改正にともない、外資が参入している保険会社の特定役員に対する居住要件が緩和され、会長（チェアパーソン）、常務取締役（MD）、または最高経営責任者（CEO）のうち、いずれか1名のみがインド居住市民であればよいことになりました。

Section A: Sector Updates

1. Guidelines for mining plans for underground coal gasification

The Ministry of Coal has issued guidelines for the preparation and approval of mining plans for underground coal gasification projects. The guidelines mandate prior approval of mining plans, prescribe safety measures for underground gasification operations, and require mine closure plans for both progressive and final mine closure. They also allow project proponents to claim reimbursements from escrow accounts against closure expenditures, reducing the financial burden associated with mine closure and post-closure obligations.

2. Scheme for Promotion of Surface Coal/Lignite Gasification Projects (Coal Gasification Scheme)

The Union Cabinet has approved the Coal Gasification Scheme with a financial outlay of INR 37,500 crore to accelerate coal and lignite gasification and support the national target of gasifying 100 million tonnes of coal by 2030. The scheme provides financial incentives of up to 20% (twenty percent) of plant and machinery costs for eligible surface coal gasification projects, with project selections through a competitive bidding process.

3. National Shipping Board Rules, 2026 notified

The Ministry of Ports, Shipping and Waterways notified National Shipping Board Rules, 2026 by revising the framework governing functioning of the National Shipping Board under the Merchant Shipping Act, 2025. They modernise and strengthen India’s maritime governance framework by stipulating to establish the National Shipping Board for a fixed term along with periodic board meetings conducted after providing prior notice. 

4. Central Motor Vehicle Rules Amended

The Central Motor Vehicles Rules, 2026 introduce changes to the vehicle fitness and testing framework. The rules provide for classification of vehicles as end-of-life vehicles if they remain unfit for more than 180 days. The rules have also revised the eligibility criteria for operating automated testing stations and enhance vehicle fitness testing through geo-tagged video records. 

Section B: General Updates

1. Guidelines to facilitate faster cross‑border inward payments 

The Reserve Bank of India (RBI) has introduced measures to expedite the processing of cross‑border inward remittances. The framework mandates immediate customer intimation on receipt of inward payment messages, near real‑time reconciliation of nostro account credits, and timely credit of funds to beneficiary accounts. Banks can adopt straight‑through processing and digital interfaces to streamline documentation and transaction tracking for resident individuals.

2. RBI issues new directions for Trade Receivables Discounting System (TReDS)

The RBI has issued the Trade Receivables Discounting System Directions, 2026, consolidating the regulatory framework governing TReDS platforms. The directions prescribe minimum capital requirements, facilitate simplified onboarding of MSMEs, permit credit guarantees and insurance for transactions, and enable re-discounting of receivables by financiers. The framework also streamlines settlement mechanisms and replaces the earlier fragmented regulatory regime. 

3. RBI liberalises foreign portfolio investment by individual non-residents (NRIs)

The RBI has liberalised the foreign portfolio investment framework by permitting all individual persons resident outside India, and not only NRIs and OCIs, to invest in listed Indian companies under Schedule III of the FEMA (Non-debt Instruments) Rules, 2019. The directions provide for repatriable INR accounts, prescribe reporting and monitoring mechanisms, and set out compliance requirements for authorised dealer banks. 

4. Unsuccessful party in arbitration may invoke section 9 

The Supreme Court clarified that unsuccessful parties can also apply for interim reliefs under section 9 of Arbitration and Conciliation Act, 1996 at post-award stage but keeping the threshold of relief for such parties higher than usual. This case interpreted expression of “a party” under section 9 and stated that the definition does not provide for any distinction between a successful or unsuccessful parties to apply for interim relief. The ruling clarifies the scope of section 9 and the availability of post-award interim relief irrespective of the outcome of the arbitration proceedings.

5. Constitution of India can be used to modify flawed arbitration awards

The Supreme Court held that while courts exercising jurisdiction under sections 34 and 37 of Arbitration and Conciliation Act, 1996 are generally limited to the grounds expressly provided under the statute, the Supreme Court may invoke its powers under Article 142 of the Constitution to modify an arbitral award in appropriate cases to ensure complete justice. 

6. Central Rules under the Labour Codes notified

The Ministry of Labour and Employment notified the rules under the four labour codes, namely the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020. The notified rules prescribe, amongst others, a comprehensive framework covering areas such as working hours, employment of women subject to specified safeguards, wage determination, social security benefits, recognition of trade unions, grievance redressal mechanisms, and procedures for lay-offs, retrenchments, and closure of establishments. 

7. Non-Debt Instrument Rules amended

The Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2026 remove the foreign investment cap in insurance companies and insurance intermediaries, permitting up to 100% foreign investment under the automatic route, while retaining a 20% cap for the Life Insurance Corporation of India. The amendments also relax residency requirements for specified personnel in insurance companies with foreign investment by requiring only one of the chairpersons, managing director, or chief executive officer to be a resident Indian citizen.

Guidelines for mining plans for underground coal gasification released

The Ministry of Coal (MOC) released guidelines for the preparation and approval of mining plans for coal and lignite blocks for underground coal gasification. [1]  Key features include:

1. Applicability: All coal or lignite blocks proposed for underground gasification should have a mining plan approved by the Coal Controller Organisation before the start of gasification activities. The approved plan is valid for the life of the mine.
2. Safety requirements: A safety management plan covering subsidence, fire, condensate, and groundwater contamination is mandatory. In mixed mines, where underground gasification operations co-exist with opencast or underground mining, a barrier of at least 500 (five hundred) metres must be maintained between the 2 (two) operations. Sufficient distance must also be maintained from groundwater tables, aquifers, and rivers.
3. Mine closure plans: Mine closure plans are mandated and are required to cover both progressive closures, updated every 5 (five) years, and final closure. Final closure plan will include well sealing, cavity stabilisation, dismantling of structures, landscaping, and post-closure groundwater monitoring for 3 (three) years. Project proponents must engage local communities through the district administration to address any impacts on livelihood.
4. Escrow account: Mine closure plans should mention the amount to be deposited in the escrow accounts. These accounts will facilitate deposition and withdrawal of funds for mine closure. Up to 75% (seventy-five percent) of the accumulated escrow amount may be reimbursed to the project proponent every 5 (five) years based on certified progressive closure expenditure, with the balance released after final mine closure.

Scheme for promotion of surface coal/lignite gasification approved

The Union Cabinet approved a scheme for Promotion of Surface Coal/Lignite Gasification Projects (Coal Gasification Scheme) with a total financial outlay of USD 3.95 million. [2]  The Coal Gasification Scheme marks a major step towards accelerating India’s coal/lignite gasification programme, advancing the national target of gasifying 100 (one hundred) million tonnes of coal by 2030. 

Coal gasification refers to the conversion of coal or lignite into a combustible synthetic gas. Under the Coal Gasification Scheme, financial incentives will be provided for surface coal gasification projects in 4 (four) instalments, at a maximum of 20% (twenty percent) of the cost of plant and machinery. Financial support for a single project has been capped at USD 526.32 million, for a single product at USD 947.37 million, and for a single entity or group at USD 1.2 billion across all projects. Projects will be selected through competitive bidding. 

Coal Exchange Rules, 2026 notified

The MOC notified the Coal Exchange Rules, 2026 (Rules) under the Mines and Minerals (Development and Regulation) Act, 1957, which provides for establishment of mineral exchanges. [3]  A coal exchange is a registered electronic trading platform or marketplace where buyers and sellers of coal can trade. Key features of the Rules include:

1. Registration of coal exchanges: Rules provide eligibility requirements for applicants to register as a coal exchange. The applicant must, among other conditions, be demutualised (which means that ownership and management of the entity must be separate from the rights to trade on its platform.). Registration will remain valid for a period of 25 (twenty-five) years. Any entity under operation before commencement of the Rules will be required to register within 6 (six) months of operationalisation of the first mineral exchange. 
2. Risk Management and Grievance Redressal: Coal exchanges will constitute a risk assessment and management committee which will undertake periodic reviews. All coal exchanges will be required to establish a settlement guarantee fund, clearing and settlement mechanisms, and procedures to handle defaults. Exchanges will also be required to establish grievance redressal mechanisms for members and clients and have a pre-approved exit plan.
3. Functions of the authority: The Coal Controller Organisation will be the regulatory authority. It will have the power to register and regulate exchanges, approve contracts, conduct inspections, undertake market oversight, and revoke registration for certain violations. It may also intervene in the market in cases of abnormal price volatility or manipulation.

National Shipping Board Rules, 2026 notified

The Ministry of Ports, Shipping and Waterways (MoPSW) notified the National Shipping Board Rules, 2026 (Rules), introducing a revised governance and procedural framework for the functioning of the National Shipping Board under the Merchant Shipping Act, 2025. [4]  

The Rules supersede the earlier National Shipping Board Rules, 1960, thereby replacing a regulatory structure that had remained in force for more than 6 (six) decades. Under the newly notified Rules, the Central Government will establish the National Shipping Board for an initial 2 (two)-year term. If reconstitution is delayed, the existing board can continue for a maximum of 6 (six) months, ensuring continuity in decision-making. The board will formally meet every three months, requiring a 15-day (fifteen-day) notice period under the management of the Chairperson. 

This updated framework aims to modernize India’s maritime governance by establishing a structured, effective advisory body.

Central Motor Vehicle Rules Amended

The Ministry of Road Transport and Highways (MoRTH) notified the Central Motor Vehicles (Sixth Amendment) Rules, 2026 (2026 Rules). [5]  The Rules amend the Central Motor Vehicle Rules, 1989 (1989 Rules). The 1989 Rules provide framework for motor vehicle registration, licencing, safety standards, and roadworthiness. Key features include:

1. Re-testing of unfit vehicles: The 2026 Rules specify that if a vehicle is not declared fit within 180 (one hundred and eighty) days of being declared unfit, the vehicle will be categorised as an end-of-life vehicle. End-of life vehicle refers to one that is no longer deemed roadworthy or legally eligible for use.
2. Eligibility criteria for owning automated testing stations: Earlier, a person related to repair, manufacturing, or sale of vehicles could not become the owner or operator of an automated testing station directly. However, they were permitted to do so by forming a subsidiary. The 2026 Rules instead specify that a service station or any person related to repair of vehicles will not be eligible to be the owner or operator directly in the same district, where such operations are conducted. Further, it omits the requirement to form a subsidiary in other cases.
3. Vehicle fitness tests: Under the 1989 Rules, vehicle’s fitness certificate is renewed after an inspecting officer, or an authorised testing station carries the specified tests. The 2026 Rules add that all such tests must be captured in a geo-tagged video and uploaded through a mobile application developed by the central government. Previously, under the 1989 Rules, a vehicle fitness test involved checks of reflectors, steering gear, and speedometer. The 2026 Rules expands the list of checks to also include vehicle location tracking device, high security registration plate, speed governor, and seat belt.

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

The Ministry of Food Processing Industries (MFPI) has notified the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI Scheme), implemented over a period of 6 (six) years from financial year (FY) 2021-22 to FY 2026-27, with a total financial outlay of USD 1.147 billion . [6]  The PLISFPI Scheme aims to strengthen India's food processing sector, promote Indian brands in global markets, and support domestic value addition across the supply chain. Key features of the PLISFPI Scheme are as follows:

1. Eligible product segments: The PLISFPI Scheme incentivises manufacturing across 4 (four) major food product categories, namely ‘Ready to Cook/Ready to Eat’ (RTC/RTE) foods, processed fruits and vegetables, marine products, and mozzarella cheese. 
2. Millet integration: MFPI has extended the PLISFPI Scheme to incentivise the use of millets in RTC/RTE products. Sales of millet-based products have increased from USD 40.2 million in FY 2022-23 to USD 194.24 million in FY 2024-25, with millet procurement increasing approximately 15 (fifteen) times over the same period.
3. Participation and coverage: A total of 128 (one hundred and twenty-eight) companies have been approved under the PLISFPI Scheme, covering 274 (two hundred and seventy-four) units across 22 (twenty-two) states. The PLISFPI Scheme provides for participation by both large companies and MSMEs, with 68 (sixty-eight) MSME applicants and 40 (forty) contract manufacturing units receiving support.
4. Investment and capacity: Against a committed investment of USD 812.84 million, cumulative investment under the PLISFPI Scheme has reached USD 969.16 million, exceeding initial commitments. Approximately 34 (thirty-four) lakh metric tonnes per annum of processing and preservation capacity have been added, and employment of approximately 3.29 (three point two nine) lakh persons, including direct and indirect employment, has been generated.
5. Sales and export performance: Sales of PLISFPI Scheme supported products have grown at a compound annual growth rate (CAGR) of 10.58% (ten-point five eight percent), and export sales of PLISFPI Scheme supported products have grown at a CAGR of 7.41% (seven point four one percent).

Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 amended

The RBI, through its circular dated April 10, 2026, amended the Master Directions for Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 (Amended Master Directions).  [7]  Key changes include:

1. Definition of NRI introduced: The Amended Master Directions now define an NRI as an individual resident outside India who is a citizen of India. 
2. Investments by NRIs in debt instruments: NRIs may invest in debt instruments specified in the Schedule 1 paragraph 1 (sub-paragraph B and C) of the Foreign Exchange Management (Debt Instruments) Regulations, 2019. Further, such investments shall not be subject to any investment limits under these Amended Master Directions.
3. Debt instruments permitted as collateral for derivative transactions: FPIs may now offer Government securities and non-convertible debentures/bonds issued by an Indian company as acquired under these Amended Master Directions, as collateral to recognised stock exchanges in India for transactions in exchange traded derivative contracts.

RBI (Responsible Business Conduct) Second Amendment Directions, 2026

On June 15, 2026, RBI issued the Responsible Business Conduct (Second Amendment) Directions, 2026, for the statutes governing the advertising, marketing, and sale of financial products by regulated entities, including scheduled commercial banks and NBFCs. [8]  Issued as a package of entity-specific notifications under press release no. 2026-2027/460, the directions take effect from 1 January 2027. Key features include:

1. Mandatory customer consent: Regulated entities must obtain explicit consent from customers prior to the sale of their own or third-party products. The user interface must be designed to ensure customers review the applicable terms and conditions before providing consent, with the default consent option set as 'No' or 'I do not agree'.
2. Restrictions on compulsory bundling: Banks are prohibited from compulsorily bundling third-party products or services with banking services. Where access to a banking service is conditional upon obtaining a third-party product as a risk mitigation measure, customers must be permitted to obtain such product from a provider of their choice.
3. Prohibition on dark patterns: Regulated entities and their direct selling and marketing agents are prohibited from deploying dark patterns in their user interfaces, including practices that mislead customers into taking actions they did not originally intend, such as creating false urgency or scarcity to induce immediate purchases.

RBI (Responsible Business Conduct) Third Amendment Directions, 2026

On June 24, 2026, the RBI issued the Responsible Business Conduct (Third Amendment) Directions, 2026 (styled the Second Amendment for Payments Banks), revising the framework on limiting the liability of customers in unauthorised and fraudulent electronic banking transactions. [9]  Key features include:

1. Liability for fraudulent transactions: The burden of proving customer liability in fraudulent transactions lies with the bank. Customers have zero liability where the fraud results from bank negligence, or where a third-party breach is reported within 5 (five) days. Customers bear losses arising from fraudulent transactions attributable to their own negligence.
2. Compensation for small-value fraudulent electronic transactions: In cases involving customer negligence, banks must compensate victims of fraudulent electronic banking transactions involving gross losses of up to USD 526. Such compensation is available once in the lifetime of an individual and is limited to 85% (eighty-five percent) of the net loss, after deducting recoveries, or USD 263, whichever is lower.

RBI amends regulations governing cross-border mergers

On May 29, 2026, the RBI issued the Foreign Exchange Management (Cross Border Merger) (Amendment) Regulations, 2026, amending the Foreign Exchange Management (Cross Border Merger) Regulations, 2018. [10]  The amendments broaden the scope of authorities that may approve schemes of merger or amalgamation for the purposes of the cross-border merger framework, aligning the regulations with the applicable framework under the Companies Act, 2013. The amendments will come into effect from the date of their publication in the Official Gazette. Key changes include:

1. Introduction of Competent Authority: The amendments introduce the term ‘Competent Authority’, which refers to any authority empowered under the Companies Act, 2013 or subordinate legislation made thereunder to approve a scheme of merger or amalgamation.
2. Replacement of references to NCLT: References to the National Company Law Tribunal (NCLT) under the regulations have been replaced with references to the ‘Competent Authority’.

RBI reduces timeline for realisation of export proceeds

On June 5, 2026, the Reserve Bank of India (RBI) issued the Foreign Exchange Management (Export of Goods and Services) (First Amendment) Regulations, 2026, amending the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015. [11]  The amendments shorten the timeline available to exporters for realisation and repatriation of export proceeds, thereby requiring businesses engaged in cross-border trade to strengthen their receivables management and foreign exchange compliance processes. The amendments will come into effect from the date of their publication in the Official Gazette. Key details include:

1. Reduction in timeline for realisation of export proceeds: The timeline for realisation and repatriation of the full value of goods, software or services exported from India has been reduced from 15 (fifteen) months to 9 (nine) months from the date of export.
2. Reduction in timeline for exports to warehouses outside India: In case of goods exported to warehouses established outside India with the permission of the RBI, the timeline for realisation of the full export value has similarly been reduced from 15 (fifteen) months to 9 (nine) months from the date of shipment.

RBI liberalises foreign portfolio investment by individual NRIs

On June 15, 2026, the RBI issued directions liberalising foreign portfolio investment under Schedule III of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. [12]  The directions follow amendments to the rules permitting all individual persons resident outside India, instead of NRIs and Overseas Citizens of India (OCIs), to invest in equity instruments of listed Indian companies on recognised stock exchanges in India, subject to enhanced investment limits. Key provisions include:

1. Repatriable INR accounts: Authorised Dealer Category-I banks may open repatriable INR accounts for individual persons resident outside India to facilitate investments under Schedule III.
2. Reporting and monitoring: Transactions undertaken by individual NRIs and compliance with the prescribed investment limits will be reported and monitored in the same manner as investments by NRIs and OCIs.
3. Reclassification as FDI: Where an investment made under Schedule III breaches the prescribed investment limits or is otherwise required to be reclassified from Foreign Portfolio Investment to Foreign Direct Investment (FDI), such reclassification must be undertaken in accordance with the framework prescribed by the RBI for Foreign Portfolio Investors.
4. Compliance requirements: Authorised Dealer Category-I banks must establish appropriate systems and procedures and may obtain necessary documents and disclosures from investors to ensure compliance with applicable FEMA and SEBI requirements.

SEBI notifies the SEBI (Mutual Funds) Regulations, 2026

SEBI had issued a consultation paper dated October 28, 2025 proposing a comprehensive review of the extant SEBI (Mutual Funds) Regulations, 1996 (Extant Regulations) with the objective of, inter alia: (a) simplifying the regulatory language; (b) improve transparency and investor protection (c) removing redundant provisions and interpretational ambiguities; (d) improving ease of understanding and compliance; and (e) aligning the regulatory framework with the evolving mutual fund ecosystem.

Pursuant to the public consultation process, SEBI has notified the SEBI (Mutual Funds) Regulations, 2026 (New Regulations), which has come into force with effect from April 1, 2026, repealing and replacing the Extant Regulations. [13 ] Key changes include:

1. Simplification and Structural Reorganisation: The New Regulations simplify and rationalise several provisions of the Extant Regulation by, inter alia: (a) introducing a clearer tabulated framework for sponsor eligibility, that codifies a capitalisation-based route alongside the existing track record-based route; (b) reorganising and consolidating the obligations and responsibilities of asset management companies (AMCs) and trustees under thematic heads; (c) expressly defining and clarifying several previously undefined concepts and terms; and (d) adopting a more principles-based drafting structure, with various operational requirements expected to be governed through SEBI circulars and master circulars.
2. Easing of Compliance Requirements: The New Regulations ease the compliance burden applicable to mutual funds (MFs), AMCs and trustees by, inter alia: (a) reducing the minimum number of trustee meetings required annually; and (b) permitting disclosure through publication on the AMC’s website in place of newspaper advertisements for matters such as change in control and changes to the fundamental attributes of schemes, largely replacing newspaper publication requitement except where SEBI specifically mandates print publication in particular cases.
3. Transparency and Investor Protection: The New Regulations also revise the expense framework applicable to mutual fund schemes by, inter alia: (a) introducing a Base Expense Ratio -centric expense framework with transaction costs and statutory levies charged separately on actuals. (b) removing the ability to charge an additional expense of 5 basis points in respect of schemes where exit load is levied; (c) excluding statutory levies from expense ratio limits; and (d) prescribing revised limits for the Base Expense Ratio, being the component of the Total Expense Ratio excluding brokerage and transaction costs, exchange fees, regulatory fees and statutory levies. 

The New Regulations further enable SEBI to introduce a framework permitting AMCs to levy performance-linked expenses for schemes, although the detailed operational framework and conditions in this regard are presently awaited.

1. Formalisation of ‘MF Lite’ framework for passive funds: The New Regulations formally introduce the ‘MF Lite’ regime, which provides a simplified regulatory pathway for sponsors focused on passive investment products such as exchange-traded funds (ETFs) and index funds. 
2. Sponsor eligibility: The New Regulations reorganise sponsor eligibility into two distinct pathways i.e. a traditional profitability and financial track-record route, and an alternate professionally managed route with enhanced AMC capitalisation and experience requirements.
3. Private equity funds as sponsors: While the ability of private equity funds to sponsor mutual funds had previously been introduced through amendments to the Extant Regulations, the New Regulations now expressly codify the ability of pooled investment vehicles, including private equity funds, to act as sponsors, subject to further conditions as prescribed by SEBI.
4. Vicarious liability of AMCs: Under the Extant Regulations, AMCs were vicariously liable for acts of commission or omission by employees and persons whose services had been procured by the AMC, without further guidance on the circumstances in which such liability would arise.

The New Regulations clarify that such liability would arise where the relevant act or omission occurs in the course of discharge of functions under the regulations and involves negligence, breach of duty or non-compliance with applicable law.

General reference to a tender document does not automatically incorporate its arbitration clause

In Maharashtra State Electricity Distribution Company Limited (MSEDCL) & Ors. v. R.Z. Malpani, [14]  the Supreme Court held that a general reference in a letter of intent to an arbitration clause contained in a tender document does not constitute a valid arbitration agreement for the purpose of seeking appointment of an arbitrator. The Court emphasised that a tender is merely an invitation to offer and not a concluded agreement, and accordingly, its specific terms including any arbitration clause cannot be treated as binding on the parties unless there exists a clear and mutual intention to incorporate those precise terms into the final contract. A general or passing reference to a tender document, without more, is insufficient to achieve such incorporation.

Supreme Court sets aside arbitration initiated after twenty-one year delay

In State of West Bengal & Ors. v. M/S B.B.M. Enterprises [15] , the Supreme Court reaffirmed that while arbitration is encouraged as an alternate dispute resolution mechanism, it cannot override the principles of limitation. The Court observed that section 43 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) expressly applies the Limitation Act, 1963 (Limitation Act) to arbitration proceedings, and that for claims involving recovery of money, article 18 of the Limitation Act prescribes a limitation period of 3 (three) years. Since the notice invoking arbitration was issued after 21 (twenty-one) years from completion of work in the present case, the Supreme Court accordingly quashed the arbitration proceedings and reiterated that courts must prima facie reject time-barred claims at the threshold, so as to prevent parties from being drawn into protracted arbitration proceedings on the basis of dead claims.

Unsuccessful party in arbitration, may invoke section 9 at the post-award stage

In Home Care Retail Marts Pvt Ltd v. Haresh N Sangavi,  [16]  the Supreme Court upheld that any party to an arbitration agreement, including an unsuccessful party in arbitration, may invoke section 9 of the Arbitration Act at the post-award stage. It was upheld that section 9 uses the expression ‘a party’, which is defined as a party to an arbitration agreement, and does not distinguish between successful and unsuccessful parties and that introducing such a limitation would amount to rewriting the statute. The Supreme Court observed that denying interim protection to an unsuccessful party solely because it lost in arbitration could leave such a party remediless, particularly where the award is under challenge. It was further clarified that interim relief should not be granted routinely to unsuccessful parties and that the threshold for granting interim relief to an unsuccessful party should be necessarily higher, and the courts must rigorously examine whether a strong prima facie case, a favourable balance of convenience, and the likelihood of irreparable harm are each satisfactorily made out before such relief is extended.

Jurisdictional objection rejected by arbitrator cannot be independently challenged 

In M/s. MCM Worldwide Private Limited v. M/s. Construction Industry Development Council,  [17]  the Supreme Court clarified that an arbitral tribunal's decision rejecting a plea challenging its own jurisdiction cannot be independently challenged under sections 34 or 37 of the Arbitration Act. Such a challenge can be raised only after the conclusion of the arbitral proceedings, by way of an application against the final award. Examining the scheme of section 16, the Supreme Court observed that where a jurisdictional plea raised under section 16(2) or section 16(3) is rejected by the tribunal, section 16(5) mandates the continuation of arbitral proceedings until an award is rendered, and section 16(6) restricts the aggrieved party to raising such a challenge only at the stage of challenging the final award under section 34. The Supreme Court drew a clear distinction regarding the scope of appellate remedy under section 37, holding that an appeal thereunder is maintainable only where the arbitral tribunal accepts the plea of lack of jurisdiction and consequently terminates the proceedings and not where such a plea is rejected.

Nature of interest in arbitral award cannot be modified under section 33(1)(a)

In Gujarat Water Supply and Sewerage Board v. Saryu Plastics Pvt. Ltd.,  [18]  the Supreme Court upheld that substance of an arbitral award cannot be altered under the guise of correcting errors, and that changing the nature of interest awarded from simple interest to compound interest amounts to a substantive modification that falls outside the limited scope of section 33(1)(a) of the Arbitration Act. It was further provided that section 33 of the Arbitration Act is narrowly confined to correcting computational, typographical, or clerical errors and cannot be converted into a mechanism for reviewing or rewriting an arbitral award.

Writ Jurisdiction cannot be invoked to challenge arbitrator’s decision

The Supreme Court, in case of M/s Tarini Prasad Mohanty v. M/s Sunflag Iron and Steel Company Limited,  [19]  held that a High Court’s writ jurisdiction cannot ordinarily be invoked to challenge an arbitral tribunal’s order under section 16 of the Arbitration Act. The Court reaffirmed that any challenge to such an order must be raised under section 34 after the conclusion of arbitral proceedings, as contemplated under section 16(6) of the Arbitration Act. It further observed that a single judge, while exercising writ jurisdiction, cannot examine the merits of the dispute in a challenge to a section 16 order. It was clarified that writ jurisdiction may be invoked only in exceptional cases where the arbitral tribunal suffers from a complete lack of inherent jurisdiction.

Constitution of India can be used to modify flawed arbitration awards

The Supreme Court, in the case of Bhupesh Bhayana v. Kunal Seth  [20]  upheld that Article 142 of the Constitution of India can be used to modify flawed arbitration awards. The Supreme Court reaffirmed that the scope of judicial interference under sections 34 and 37 of the Arbitration Act is restricted to the grounds expressly provided under section 34 and distinguished between modification and setting aside of an arbitral award, observing that while setting aside nullifies the award in its entirety, modification is a limited and carefully exercised power aimed at achieving a just and equitable outcome. It was further clarified that the appellate jurisdiction under section 37 is coextensive with the jurisdiction under section 34 and the power under Article 142 of the Constitution of India may be exercised to do substantial justice rather than relegate parties to a fresh round of litigation.

One-time concession on customs duty for specified goods cleared from Special Economic Zones (SEZ) to the Domestic Tarriff Area (DTA) 

In view of ongoing global trade disruptions, Central Board of Indirect Taxes and Customs has introduced a one-time relief measure allowing eligible manufacturing units on concessional customs duty rates from April 1, 2026, to March 31, 2027.  [21]  As per the SEZ Act, 2005, custom duties are applied on SEZ goods when they are sold in the DTA (i.e. whole of India other than SEZs). 

To avail the benefit, the SEZ unit must have commenced production on or before March 31, 2025, and the goods cleared under the relief window must have undergone a minimum value addition of 20% (twenty percent) over the inputs. Further, DTA clearances at concessional rates are capped at 30% (thirty percent) of the highest annual free on board value of exports achieved by the SEZ unit in any of the 3 (three) immediately preceding financial years. 

Supreme Court upholds goods and services tax (GST) levy on online money gaming and casino transactions.

The Supreme Court, in Directorate General of GST Intelligence (HQS) v. Gameskraft Technologies Pvt. Ltd. & Ors., [22]  upheld the constitutional validity of the goods and services tax (GST) levy on online real money gaming. The Supreme Court examined the validity of Central Goods and Services Tax (Amendment) Act, 2023 (2023 amendment), which substantially enhanced the GST exposure for the sector, including in terms of valuation and rate, and held the same to be clarificatory in nature, and applied them retrospectively with effect from the inception of GST (i.e., July 01, 2017). Prior to 2023 amendment, the skill-based gaming operators were discharging GST only on the platform fee or gross gaming revenue retained by them, at the rate of 18% (eighteen percent), which became the bone of contention before the Courts. 

With the said judgment, skill-based gaming operators are now required to discharge GST liabilities on the value of deposits made on the platforms, at the rate of 28% (twenty-eight percent). Closing the debate over skill v/s chance, the Supreme Court has categorically clarified that for GST purposes, activities involving staking of money or money's worth on uncertain future outcomes constitute betting and gambling, irrespective of whether the underlying game is predominantly one of skill or chance. 

On the argument by the industry participants that the proposed GST demands far exceeds the revenue earned by the industry participants in the corresponding period, the SC held that tax legislation cannot be invalidated solely because it may adversely affect the commercial viability of a business sector.

Having upheld the levy of GST, the Supreme Court has directed the industry participants to file their replies before the GST department, which shall be adjudicated in terms of applicable provisions. Considering that the initial position of the GST department was to charge GST on each stake placed by a user (as against deposits made at the entry level), the industry participants have a scope to contest the demands to that extent. Additionally, arguments relating to the limitation period and levy of penalties could also be potentially contested in the course of adjudication.

Central Rules Under the Labour Codes Notified 

On May 8, 2026, the Ministry of Labour and Employment (MLE) notified the rules under the: (i) Code on Wages, 2019 (Wages Code); (ii) Code on Social Security, 2020 (SS Code); (iii) Industrial Relations Code, 2020 (IR Code); and (iv) Occupational Safety, Health and Working Conditions (OSH) Code, 2020 (the Labour Codes). Key features include:

1. The OSH (Central) Rules, 2026 The rules, amongst others, prescribes that the weekly working hours in any establishment must not exceed 48 (forty-eight) hours. [23] Women may be employed before 6:00 AM or after 7:00 PM (night shift), subject to prescribed safeguards including obtaining a written consent, provision of transportation facilities, and CCTV surveillance. The rules further prescribe requirements relating to registration, maintenance of records, and constitution of safety committees and other statutory bodies.
2. The Industrial Relations (Central) Rules 2026: Establish procedures relating to recognition of trade unions, constitution of Works Committees and Grievance Redressal Committees, and issuance of notices for strikes and lockouts. [24]  The IR (Central) Rules 2026 also prescribe timelines for seeking prior approval from the Central Government in cases involving lay-offs, retrenchments, and closure of establishments. 
3. The Code on Wages (Central) Rules, 2026: Amongst others, the rules prescribe minimum wages determination methodology and have revised the variable dearness allowance.  [25]  The Code on Wages (Central) Rules, 2026 also provide for fixation of a floor wage by the Central Government, which must be reviewed at intervals not exceeding 5 (five) years.
4. The Social Security (Central) Rules, 2026: Establishes procedure for administering social security benefits, including provident fund, gratuity, insurance, and maternity benefits.  [26]  Under the Social Security (Central) Rules, 2026, gig and platform workers may become eligible for social security benefits upon meeting prescribed engagement thresholds with aggregators during the preceding financial year.

For further details please refer to: https://cms-induslaw.com/en/ind/publication/faqs-on-the-recently-implemented-central-rules-under-india-s-new-labour-codes

MCA Approves CSR Fund Deployment via Social Stock Exchange

On May 27, 2026, the Ministry of Corporate Affairs (MCA) has officially integrated the Social Stock Exchange (SSE) into the corporate philanthropic framework by amending the Companies (Corporate Social Responsibility Policy) Rules, 2014, and Schedule VII of the Companies Act, 2013.  [27]  Corporations can now fulfil their mandatory corporate social responsibility (CSR) obligations through funds via SEBI-regulated SSE. Key highlights are: 

1. Subscription to Zero Coupon Zero Principal (ZCZP) instruments: Companies are legally permitted to deploy their mandatory CSR funds by subscribing to ZCZP instruments. These securities must be issued by eligible not-for-profit organizations (NPOs) registered on the SEBI regulated SSE segment of recognized stock exchanges, such as the National Stock Exchange or Bombay Stock Exchange.
2. Statutory expenditure cap: A company's total expenditure on subscriptions to ZCZP instruments is restricted to a maximum cap of 10% (ten percent) of its total mandatory CSR budget for that specific financial year. 
3. Impact assessment exemption and transfer of liability: Under rule 4A (2), corporate subscribers are granted an absolute exemption from mandatory independent impact assessments traditionally required under the baseline CSR framework for companies with a USD 1.05 million average annual budget on individual projects exceeding USD 105,263. This amendment completely waives this corporate monitoring obligation for the SSE route, transferring the entire legal responsibility for project execution and evaluation to the issuing NPO. The NPO assumes full accountability under SEBI regulations and must satisfy capital market compliance by submitting a comprehensive Annual Impact Report detailing social milestones directly to the exchange and its subscribers.
4. Project execution timelines: The underlying social welfare project funded by the issuance of the instruments must be successfully executed and completed by the implementing NPO within a maximum timeframe of 3 (three) succeeding financial years from the date the ZCZP instrument is issued. 
5. Treatment of unspent capital and compliance reporting: Upon the termination of the ZCZP instrument's listing on the exchange, the issuing NPO is legally barred from retaining any remaining capital. All unspent funds must be immediately transferred to a designated state fund listed under Schedule VII of the Companies Act, 2013, and a formal compliance report must be submitted directly to the SEBI.

Non-Debt Instrument Rules Amended

On the May 02, 2026, the Ministry of Finance notified the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2026 (2026 Rules) amending the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (2019 Rules).  [28]  Key features include: 

1. Removal of foreign investment ceiling in insurance companies: The Insurance Act, 1938 was amended in 2025 to increase the foreign investment limit in Indian insurance companies and insurance intermediaries from 74% (seventy-four percent) to 100% (one hundred percent) under the automatic route. However, foreign investments in the Life Insurance Corporation of India are only permissible up to 20% (twenty percent).
2. Relaxation of residency requirements: Under the 2019 Rules, specified persons in an Indian insurance company having foreign investments were required to be resident Indian citizens. These persons included: (i) a majority of the board of directors, (ii) a majority of its key management persons, and (iii) at least one among the chairperson of the board, the managing director, and the chief executive officer. The 2026 Rules amend this to only require at least 1 (one) among the Chairperson of the Board, the Managing Director and the Chief Executive Officer to be a resident Indian citizen.

Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2026 

On June 12, 2026, the Ministry of Finance notified the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2026 (2026 NDI Rules), to broaden the framework governing investments by an individual resident outside India. [29]

Previously, only NRIs and overseas citizens of India (OCIs) were permitted to invest in the equity instruments of listed Indian companies and other specified securities. Under the 2026 NDI Rules, the eligible individuals permitted to invest in equity instruments of listed Indian companies and other specified securities, now includes individuals who are not necessarily NRIs or OCIs, subject to the terms and conditions as specified in Schedule III of the 2026 NDI Rules. Therefore, individuals of other nationalities irrespective of nationality or ancestral connection can now choose to invest, subject to terms and conditions.

The 2026 NDI Rules also revise the applicable investment limits. The previous individual investment limit of up to 5% (five percent) of the paid-up equity capital of a listed Indian company has been increased to less than 10% (ten percent) for each individual resident outside India (PROI). 

Further, the aggregate investment limit for all PROIs (collectively) investing in the paid-up equity capital of a listed Indian company has been increased from 10% (ten percent) to 24% (twenty-four percent). Under the erstwhile framework, the aggregate limit could be increased from 10% (ten percent) to 24% (twenty-four percent) only upon the company passing a special resolution. These revised limits apply to all PROIs, including NRIs and OCIs.

Liquidation Process Regulations Amended

On June 01, 2026, the Insolvency and Bankruptcy Board of India (IBBI) notified the IBBI (Liquidation Process) (Fourth Amendment) Regulations, 2026 (2026 Regulations), amending the IBBI (Liquidation Process) Regulations, 2016 (Liquidation Regulations). [30] Key features include:

1. Enhanced supervisory role of the CoC: Pursuant to the amendments to the Insolvency and Bankruptcy Code, 2016 (IBC) introduced in April 2026, the committee of creditors (CoC) is empowered to supervise the conduct of the liquidation process and manner of supervision is specified in the 2026 Regulations. Further, under the 2026 Regulations liquidator cannot without prior approval of the CoC undertake specified actions, including: (a) initiating or continuing legal proceedings by or against the corporate debtor; (b) sale of assets and determining the related marketing strategy and auction process; (c) appointment and remuneration of specified professionals; and (d) conducting fresh valuations. The liquidator is also required to present details of the actual liquidation costs, status of legal proceedings and progress of the liquidation process, at every meeting to the CoC.
2. Reduction in liquidation timelines: The 2026 Regulations reduce the timeline for completion of the liquidation process from 1 (one) year to 180 (one hundred and eighty) days, in line with the amendments to the IBC introduced in April 2026. Further, the timeline for distribution of proceeds realised from liquidation among stakeholders has been reduced from 90 (ninety) days to 15 (fifteen) days from the date of receipt.

Japan

1. Japan's Ministry of Foreign Affairs established the Japan-India Economic Affairs Division on April 01, 2026, under the southwest Asia division of the southeast and southwest Asian affairs department. The division is intended to support public-private efforts to facilitate Japanese companies' expansion into India, with a particular focus on high-growth sectors including artificial intelligence, startups, and critical minerals. The division's establishment is also aimed at driving efforts toward the bilateral goal of JPY 10 trillion (approximately USD 62.6 billion) in private-sector investment in India by 2035. [31]
2. HD Hyundai Co., Ltd signed a Memorandum of Understanding (MoU) with the state of Tamil Nadu for the construction of a new shipyard in India, with negotiations on detailed terms ongoing as of April 2026. Local observers estimate the new shipyard investment could reach USD 4 billion. [32]
3. India and Japan have entered into a strategic partnership to enable artificial intelligence driven smart city development through enhanced data collaboration. The initiative brings together Japan-based ONESTRUCTION Inc. and India’s Data Kaveri Systems Ltd. to unlock construction and infrastructure data. It focuses on standardising and preserving project data using frameworks like open BIM and India’s IUDX platform. The collaboration aims to support digital twins and improve urban planning, governance, and sustainability outcomes. This marks a significant step in strengthening India–Japan cooperation in building AI-ready, data-driven urban ecosystems. [33]
4. Toyota Kirloskar Motor Private Limited (Ltd.), the Indian subsidiary of Toyota Motor Corporation confirms manufacturing expansion plan with an investment of USD 2.11 billion in Maharashtra for construction of 3 (three) new vehicle assembly plants and production is scheduled to begin in first half of 2029. [34]
5. National Investment and Infrastructure Fund and Japan Bank for International Cooperation (JBIC) are collaborating to launch a USD 600 million India-Japan Fund (IJF), with the Government of India and JBIC contributing 49% (forty-nine) and 51% (fifty-one percent) of the corpus, respectively. The India-Japan Fund executed dual-track capital allocations totalling USD 105.26 million into Mahindra Last Mile Mobility Ltd. and Ather Energy Ltd. The investment mandates developing zero-emission urban transport, scaling lithium battery architectures for 3 (three) and 4 (four) wheeler cargo systems and expanding commercial charging networks across high density logistics corridors. [35]
6. The Union Cabinet, under the India Semiconductor Mission (ISM), approved 2 (two) semiconductor deals on May 5, 2026, totalling USD 410.53 million in infrastructure investment. The approval establishes the Crystal Matrix integrated compound semiconductor fab and ATMP facility in Dholera, Gujarat, and operationalizes the Suchi Semicon OSAT facility in Surat, Gujarat. Aiming for full capacity by late 2027 to supply automotive and telecom electronics, the deals open high-value supply contracts for Japanese equipment and material suppliers like Tokyo Electron and JSR Corp. [36]
7. Indian Agri-tech player MooMark Private Ltd. (a subsidiary of Stellapps) signed a commercial MoU with Japan’s Akiba Farm Holdings Co., Ltd. in May 2026 to establish a shared dairy innovation pipeline spanning 42,000 (forty-two thousand) Indian villages across 17 (seventeen) states to develop premium dairy products. [37]
8. Japan's Asahi Group Holdings has entered into a strategic alliance with Varun Beverages Ltd. to introduce Asahi's flagship CALPIS beverage brand in India. Under the arrangement, Asahi will be responsible for product development, technical support, marketing and brand management, while Varun Beverages will undertake manufacturing, distribution and sales through its established network across the country. The collaboration marks Asahi's entry into India's non-alcoholic, non-carbonated beverage segment and is expected to facilitate the launch of CALPIS in India in the second half of 2026 or thereafter. [38]
9. Japan-based Proterial, Ltd. has announced plans to establish a rare earth permanent magnet manufacturing facility in Andhra Pradesh with an investment of approximately USD 235 million. The proposed unit is expected to support India's efforts to strengthen domestic production of critical minerals and reduce reliance on imports of rare earth magnets, which are essential components in electric vehicles, renewable energy systems, electronics, aerospace and defence applications. [39]
10. Syrma SGS Technology Ltd. has entered into a joint venture agreement with Kaga Electronics India Private Ltd., the Indian subsidiary of Japan's Kaga Electronics Co., Ltd., to establish, develop and operate a technologically advanced Electronics Manufacturing Services (EMS) facility in India. Under the agreement, Syrma SGS will hold a 60% (sixty percent) stake in the joint venture and will invest USD 1.57 million in the Joint Venture, while Kaga Electronics India will hold the remaining 40% (forty percent) and will fuel in USD 1.04 million. [40]
11. Fujifilm India Private Ltd., the Indian subsidiary of Japan's Fujifilm Corporation, has signed a MoU with the Gujarat State Electronics Mission (GSEM), Department of Science and Technology, Government of Gujarat, to explore the establishment of a semiconductor materials manufacturing facility in Dholera, Gujarat. Under the MoU, Fujifilm India will assess the feasibility of setting up a production base for semiconductor materials while collaborating with government agencies, industry bodies and private sector stakeholders to strengthen India's domestic semiconductor supply chain and support the country's objective of becoming a global semiconductor manufacturing hub. [41]
12. Japan’s Kurita Water Industries Ltd. and India’s Membrane Group India Private Ltd. have established a joint venture, Kurita Membrane India Private Ltd., to provide advanced water treatment solutions for India’s semiconductor and advanced electronics manufacturing sectors. Under the partnership, Kurita Water Industries will hold a 51% (fifty-one percent) stake, while Membrane Group India will hold the remaining 49% (forty-nine percent) stake. The joint venture will provide ultrapure water systems, wastewater recycling, resource recovery, water analysis services and end-to-end water management solutions required for semiconductor manufacturing facilities. [42]