Korea Newsletter (October to December 2025)

India over the recent months has advanced a series of regulatory and policy initiatives which have implications for sectors where Korean companies are active such as electronics manufacturing, electric mobility, batteries, specialty materials, and industrial production. These developments reflect a broader policy emphasis on facilitating scale, improving regulatory predictability, and supporting long-term industrial investment.

Key developments span several strategic sectors, such as licensing requirements in medical devices, energy and resources policy has advanced through revised biomass co-firing norms, new mechanisms to support renewable energy consumption, and a comprehensive overhaul of petroleum, natural gas, and nuclear energy frameworks. The financial and corporate regulatory landscape has also evolved, with the Reserve Bank of India and SEBI strengthening governance, group-level structuring, and disclosure requirements. These reforms are complemented by the operationalisation of India’s digital personal data protection regime and the implementation of consolidated labour codes.

In this newsletter, we highlight key legal and regulatory developments in India over recent months. 

요약

(1) 인도 중앙의약품감독청(CDSCO), 의료기기 조달의 기술적 요건으로 인도 라이선스 의무화

인도 중앙의약품감독청(CDSCO)은 2017년 의료기기 규정에 따라 의료기기를 조달하는 모든 기관(공공병원 및 기관 포함)에 유효한 인도 내 제조 또는 수입 허가를 요구하도록 지시했습니다.

(2) 석탄 화력발전소에서의 바이오매스 혼소 정책 개정안

전력부는 석탄 화력 발전소에서 바이오매스 펠릿과 도시 고형 폐기물 기반의 열처리 숯을 혼합 연소할 수 있도록 개정 정책을 발표했으며, 적격 연료를 농업 잔류물 펠릿에서 도시 고형 폐기물로 생산된 열처리 숯까지 확대했습니다.

(3) 희토류 영구자석의 국내 제조 촉진을 위한 제도

인도 중공업부는 인도 최초의 소결 희토류 영구자석 제조 생태계 구축을 위한 사업을 도입했으며, 전기차, 재생에너지, 전자, 항공우주, 국방 등 핵심 분야를 지원하기 위해 연간 6,000톤의 국내 생산능력을 구축하는 것을 목표로 하고 있습니다.

(4) 석유 및 천연가스 규칙, 2025 고시

인도 석유 및 천연가스부는 1959년 석유 및 천연가스 규칙을 대체하는 2025년 석유 및 천연가스 규칙을 고시했습니다. 새로운 규정은 탐사, 개발 및 생산에 대한 독점권을 부여하는 통합 석유 임대 제도, 유전의 경제적 수명까지 유연한 임대 기간, 운영 데이터의 중앙 집중식 소유권, 온실가스 모니터링 및 감축 의무화, 그리고 임대인 간의 공유 인프라 조항을 도입합니다.

(5) 의회, 원자력 에너지 법체계 전면 개편 법안 통과

인도 의회는 '인도를 변화시키기 위한 원자력 에너지의 지속 가능한 활용 및 발전 법안, 2025'(법안)을 통과시켜 1962년 원자력법과 2010년 원자력 피해에 대한 민사책임법을 대체했습니다. 이 법안은 원자력 발전 및 핵연료 취급을 위해 인도의 민간 기업과 합작법인에 대한 인허가를 허용하고, 결함 있는 장비로 인해 발생하는 책임에 대한 사업자의 구상권을 폐지하며, 원자로 용량에 기반한 단계적 책임 체계를 도입하고, 원자력 규제위원회에 법정 지위를 부여합니다.

섹션 B – 일반 업데이트

(1)  인도준비은행(RBI), 은행의 금융서비스 제공에 관한 지침 개정

인도 중앙은행(RBI)은 상업은행-금융서비스 제공 지침에 대한 일부 개정안을 공고하였으며, 이 개정안은 특히 은행 그룹 내 비은행 금융회사(NBFC) 및 주택금융회사(HFC)를 포함하도록 그룹 차원의 대출 체계를 확대하고, 대리 업무, 그룹 계열사 및 소개 서비스에 대한 핵심 정의를 도입하며, “한 사업-한 법인” 원칙을 통해 구조적 요건을 강화하는 내용을 포함하는 것입니다.

(2)  인도 중앙은행(RBI), 은행 그룹 활동 재편을 위해 비영업 금융지주회사 지침 개정

인도중앙은행(RBI)은 은행규제법(1949)에 따라 허용된 모든 핵심 은행 활동은 은행만이 수행해야 하며, 뮤추얼 펀드, 보험, 연금, 투자 자문, 포트폴리오 관리 및 중개와 같은 특정 금융 서비스는 NOFHC가 소유한 법인을 통해 수행해야 한다는 내용의 NOFHC 지침 개정안을 발표했습니다.

(3)  인도 증권거래위원회(SEBI), 특수관계자 거래(RPTs)에 대한 감독을 정교화하기 위해 상장 의무 및 공시 요건(LODR) 규정 개정

인도 증권거래위원회(SEBI)는 2025년 SEBI(LODR)(제5차 개정) 규정을 고시하여 관련 당사자 거래(RPT)에 대한 개정된 기준을 도입했습니다. 개정안은 상장 기업의 연결 매출액과 연계된 규모별 중요성 기준을 설정하여 중요한 당사자 거래(RPT)를 판단합니다. 또한 상장법인이 당사자가 아닌 경우에도, 자회사가 관련된 중요한 특수관계자 거래에 대해서는 감사위원회의 사전 승인을 요구합니다. 소액 면제가 도입되어 약 미화 111,173달러 미만의 거래는 감사위원회 승인 요건에서 제외됩니다.

(4)  미등록 및 미인지 매매계약으로 인한 중재절차가 적법하게 종료됨

델리 고등법원은 미등록 및 인지세 미부착 매매 계약에 근거한 중재 절차의 종료를 지지하며, 그러한 미등록 및 인지세 미부착 계약은 집행 불가능하다고 판결했습니다.

(5)  통합 노동법 시행

인도 노동 및 고용부는 중앙정부 노동법 29개를 대체하는 4개의 통합 노동법전의 시행을 고시했습니다. 새로운 법전은 시행되었지만, 실제 운영 전반에 미치는 영향은 중앙정부와 주정부가 (현재 초안 단계인) 규칙을 공포하는지에 달려 있습니다.

(6)  디지털 개인정보 보호 규칙 시행

인도는 2023년 디지털 개인 데이터 보호법(DPDP Act)에 따라 2025년 디지털 개인 데이터 보호 규칙을 고시함으로써 최초의 포괄적인 디지털 개인 데이터 보호 제도를 시행했습니다. 해당 규정은 전면 시행되어 개인정보처리자에게 목적 제한, 아동의 데이터에 대한 부모 동의, DPDP 법에 따른 의무적 침해 통지 등을 포함한 엄격한 준수 의무를 부과합니다.

(7)  회사법상 ‘소규모 회사’ 정의 개정

MCA는 ‘소규모 회사’ 의 정의를 납입자본금 및 매출액 기준을 250% 상향하여 각각 약 미화 111,146달러와 1,110만 달러로 하도록 개정했습니다. 이번 개정은 완화된 규제 준수 요건과 면제(증권의 의무적 무권화 요건 완화 포함)의 적용 대상 기업 범위를 확대합니다.

(8)  국회, FDI 자유화를 위한 보험법 개정 통과

의회는 2025년 Sabka Bima Sabki Raksha(보험법 개정) 법안을 통과시켰습니다. 해당 법안은 보험회사에 대한 FDI를 최대 100%(백 퍼센트)까지 허용하고 기타 사항을 포함하여 보험사와 중개인의 규정 준수 부담을 완화합니다.

Section A: Sector Updates

(1) Central Drugs Standard Control Organisation (CDSCO) mandates Indian licence as technical requirement for medical device procurement

CDSCO directed all procurement agencies, including public hospitals and institutions, to require a valid Indian manufacturing or import licence for medical devices under the Medical Devices Rules, 2017.

(2) Revised policy on co-firing of biomass in coal-based thermal power plant

Ministry of Power issued revised policy permitting co-firing of biomass pellets and municipal solid waste-based torrefied charcoal in coal-based thermal power plants, expanding eligible fuels beyond agro-residue pellets to include torrefied charcoal produced from municipal solid waste.

(3) Scheme to promote domestic manufacturing of rare earth permanent magnets

Ministry of Heavy Industries introduced a scheme to establish India’s first manufacturing ecosystem for sintered rare earth permanent magnets with the aim to build 6,000 (six thousand) metric tonnes per annum of domestic capacity to support critical sectors such as electric vehicles, renewable energy, electronics, aerospace, and defence.

(4) Petroleum and Natural Gas Rules, 2025 notified

Ministry of Petroleum and Natural Gas notified the Petroleum and Natural Gas Rules, 2025, replacing the Petroleum and Natural Gas Rules, 1959. The new rules introduce a unified petroleum lease with exclusive rights for exploration, development, and production, flexible tenure up to the economic life of an oilfield, centralised ownership of operational data, mandatory greenhouse gas monitoring and reduction, and provisions for shared infrastructure among lessees.

(5) Parliament passes Bill to overhaul nuclear energy legal framework

The Indian Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (Bill), replacing the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. The Bill allows licensing of Indian private entities and joint ventures for nuclear power generation and fuel handling, removes operator recourse for liability arising from defective equipment, introduces a tiered liability framework based on reactor capacity, and grants statutory status to the Atomic Energy Regulatory Board.

Section B: General Updates

(1) Reserve Bank of India (RBI) amends directions on undertaking of financial services by banks

The RBI notified certain amendments to the Commercial Banks – Undertaking of Financial Services Directions which inter alia expand the group-level lending framework to include non-banking finance companies (NBFCs) and housing finance companies (HFCs) within bank groups, introduce key definitions for agency business, group entities, and referral services, and strengthen structural requirements through a “one business–one entity” principle.

(2) RBI amends Non-Operative Financial Holding Company (NOFHC) Directions to restructure bank group activities

The RBI notified amendments to the NOFHC Directions requiring all core banking activities permitted under the Banking Regulation Act, 1949 to be undertaken only by the bank, while specified financial services such as mutual funds, insurance, pensions, investment advisory, portfolio management, and broking must be carried out through NOFHC-held entities.

(3) Securities and Exchange Board of India (SEBI) amends Listing Obligations and Disclosure Requirements (LODR) Regulations to refine oversight of related party transactions (RPTs)

SEBI notified the SEBI (LODR) (Fifth Amendment) Regulations, 2025, introducing revised norms for RPTs. The amendments establish a scale-based materiality threshold linked to the listed entity’s consolidated turnover to determine material RPTs. They also require prior audit committee approval for significant RPTs involving subsidiaries, even where the listed entity is not a party. A small value exemption has been introduced, excluding transactions below approximately USD 111,173 from audit committee approval requirements.

(4) Arbitration validly terminated due to unregistered and unstamped sale agreement

The High Court of Delhi upheld the termination of arbitral proceedings where the arbitration was founded on an unregistered and unstamped agreement to sell, holding such an unstamped and un-registered agreement unenforceable.

(5) Implementation of consolidated labour codes

Ministry of Labour and Employment notified the implementation of the 4 (four) consolidated labour codes, replacing 29 (twenty-nine) central labour laws. While the new codes are now in force, their full operational impact is subject to notification of rules (which are currently in draft stages) by the central and state governments.

(6) Digital Personal Data Protection Rules brought into force

India operationalised its first comprehensive digital personal data protection regime with the notification of the Digital Personal Data Protection Rules, 2025 under the Digital Personal Data Protection Act, 2023 (DPDP Act). The rules are fully operational and impose strict compliance obligations on data fiduciaries, including purpose limitation, parental consent for children’s data, and mandatory breach notifications under the DPDP Act.

(7) Definition of ‘small company’ revised under Companies Act

MCA has amended the definition of a ‘small company’ by increasing the paid-up share capital and turnover thresholds by 250% (two hundred and fifty percent) to approximately USD 111,146 and USD 11.1 million respectively. The revision expands the scope of companies eligible for reduced compliances and exemptions, including relief from mandatory dematerialisation of securities.

(8) Parliament passes insurance law reforms to liberalise FDI

Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025. This bill permits up to 100% (one hundred percent) FDI in insurance companies and inter alia eases compliance for insurers and intermediaries.

Central Drugs Standard Control Organisation (CDSCO) asks procurement agencies to mandate Indian license as technical requirement

On November 17, 2025, the CDSCO issued a circular, that all medical devices procured in India must mandatorily hold a valid license issued under the Medical Device Rules, 2017, either by the CDSCO or the relevant State licensing authority. The circular clarified that hospitals insisting on certifications such as the USFDA/CE certification cannot be held as a valid substitute for the statutory Indian licensing requirements, and procurement of an Indian statutory license is mandatory.[1]

Maha MedTech Mission launched by Anusandhan National Research Foundation (ANRF)

On October 25, 2025, the ANRF, in collaboration with the Indian Council of Medical Research (ICMR) and the Gates Foundation, launched the Mission for Advancement in High-Impact Areas Medical Technology (Mission), aimed at accelerating innovation in India’s medical technology sector, reducing dependence on high-cost imports, and improving access to affordable and high-quality healthcare technologies.[2]

The Mission provides milestone-linked funding ranging from USD 551,752 to approximately USD 2.7 million per project, extendable up to approximately USD 5.5 million in exceptional cases, and is open to academic and research and development institutions, hospitals, startups, MSMEs, MedTech companies, and collaborative consortia. The initiative seeks to support projects that translate high-impact MedTech innovations into market-ready solutions. The key objectives of the Mission include driving public health impact by addressing priority disease areas, ensuring affordability and accessibility of medical technologies, and enhancing self-reliance and global competitiveness through indigenous development, manufacturing, and industry–academia collaboration. The scope of the Mission spans a wide range of medical devices and in-vitro diagnostics, including diagnostic imaging, minimally invasive and assistive devices, implants, consumables, software-based solutions, and emerging areas such as artificial intelligence/machine learning enabled platforms, robotics, point-of-care diagnostics, and technologies aligned with national health priorities such as tuberculosis, cancer, neonatal care, and primary healthcare.

In addition to financial support, the Mission offers enabling ecosystem assistance through initiatives such as Patent Mitra (intellectual property protection and technology transfer), MedTech Mitra (regulatory guidance), access to a clinical trial network for validation, and mentorship from industry experts. The application process follows a 2 (two) stage model. Concept notes may be submitted between September 15, 2025, and November 7, 2025, through the ANRF portal, with shortlisted applicants invited to submit full proposals starting December 2025.

Policy regarding co-firing of biomass in coal-based plants

On November 07, 2025, Ministry of Power (MoP) released a revised policy regarding use of biomass pellets in coal-based thermal plants for co-firing. Co-firing is the simultaneous combustion of 2 (two) or more different fuels in the same power plant to produce energy. Key features of the policy include:

(i) Inclusion of municipal solid waste (MSW) based torrefied charcoal: Earlier policies mandated co-firing of biomass pellets made primarily from agro residue. The new policy explicitly adds torrefied charcoal produced from MSW as an eligible fuel for co-firing in coal-based thermal power plants. Torrefied charcoal is produced by heating a biomass such as MSW in a low-oxygen environment.

(ii) Differentiated targets for national capital region (NCR) plants: The new policy introduces region-specific mandates from financial year 2025-26. Plants in the NCR must use a 5% (five percent) blend of biomass pellets plus an additional 2% (two percent) blend of biomass pellets and/or MSW-based torrefied charcoal (by weight). Plants outside NCR must co-fire at least 5% (five percent) biomass pellets and/or MSW-based torrefied charcoal.

(iii) Use of crop residue: For plants in NCR and adjoining areas, at least 50% (fifty percent) of the raw material used in biomass pellets must now be rice paddy or crop residue sourced from NCR and adjoining districts. This sourcing requirement was not present in earlier policies.

The Petroleum and Natural Gas Rules, 2025 notified

On December 09, 2025, the Ministry of Petroleum and Natural Gas (MoPNG) notified the Petroleum and Natural Gas Rules, 2025 (Rules) under the Oilfields (Regulations and Development) Act, 1948.[1] The Rules, which are effective from December 09, 2025 replace the Petroleum and National Gas Rules, 1959 and provide a revised framework for regulation of oilfields and development of mineral oil resources including the manner of issuing licences and leases with respect to petroleum and natural gas, and rights and obligations of licence/lease holders. Key features of the Rules include:

(i) Petroleum lease: Petroleum lease will be granted by: (a) the State Government for mineral oil underlying land within its jurisdiction; and (b) the Central Government for resources in offshore areas. The lease will provide exclusive right to explore, develop, and produce mineral oils. Earlier, separate concessions were issued for exploration and production. A lease will be valid for a period between 4 (four) years and 30 (thirty) years. The lease may be extended till the end of economic life of the oilfield, in one or more instalments. The lessee may also undertake activities such as exploration and generation from renewable energy sources, and exploration and production of hydrogen in the leased area.

(ii) Rights with respect to data: All data obtained as a result of operations will be the property of the central government. A lessee will have the right to use data free of cost and retain for its own purposes. The central government may disclose data to public, other than any data held to be proprietary.

(iii) Greenhouse gas emissions: Every lessee will be required to monitor and reduce greenhouse gas emissions. Lessees may undertake projects for geological storage of emissions within the leased area, after obtaining authorisation from the central government.

(iv) Sharing of infrastructure: Two or more lessees may jointly develop or share infrastructure facilities, as per mutually agreed terms and conditions.

Bill to modify the legal framework for nuclear energy passed

On December 20, 2025, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (Bill) was passed by Parliament.[4] The Bill replaces the Atomic Energy Act, 1962 (1962 Act) and the Civil Liability for Nuclear Damage Act, 2010 (2010 Act). The 1962 Act provided for the development and use of atomic energy, and the 2010 Act provided a framework for assigning liability and compensation in case of a nuclear incident. Key changes include:

(i)  Licence to non-government entities: The 1962 Act permitted only central government entities or companies to mine atomic minerals or produce nuclear energy. The Bill now empowers the Central Government to issue licences to Indian private companies or their joint ventures with government entities for generating nuclear energy and handling nuclear fuel.

(ii) Operator’s right of recourse: The 2010 Act gave operators a legal right to recover some or all of the compensation paid. This right could be exercised: (a) when such rights are provided in a contract; (b) where the incident arises due to the supply of defective equipment or materials; and (c) when the incident is caused by a deliberate act with the intent to cause damage. The Bill removes the ground of supply of defective equipment or materials.

(iii) Liability for nuclear damage: The 2010 Act specified a maximum liability of the operator at approximately USD 166.5 million for a nuclear reactor with thermal power capacity of 10 MW (ten megawatts) or above. The Bill specifies a tiered structure, with liability limits ranging from approximately USD 11.1 million to approximately USD 333 million based on power capacity.

For instance, the operator’s liability for reactors having thermal power up to 150 MW is capped at approximately USD 11.1 million. For reactors with thermal power above 150 MW and up to 750 MW, the liability limit increases to approximately USD 33.3 million, with progressively higher caps prescribed for higher capacity reactors. In the case of reactors having thermal power exceeding 3,600 MW (three thousand six hundred megawatts), the operator’s liability is capped at approximately USD 333 million.

(iv) Atomic Energy Regulatory Board (AERB): The Bill provides statutory recognition to the AERB. The Board will take measures to ensure safe use of radiation and nuclear energy.

Guidelines for Virtual Power Purchase Agreements notified[5]

On December 24, 2025, the Central Electricity Regulatory Commission (CERC) notified guidelines for virtual power purchase agreements (VPPAs). A VPPA is a financial settlement contract that is executed between the generator and the consumer outside of the power market, without involving any physical delivery of electricity generated. These agreements are intended to help designated consumers meet their renewable energy consumption obligation (RCO). This obligation was introduced through an amendment to the Energy Conservation Act, 2001 in 2022. It requires designated consumers to source a minimum percentage of electricity requirement from non-fossil sources. Designated consumers include distribution companies, open access consumers (who procure electricity directly from generators), and captive users (who generate electricity for their own use).

Currently, RCO may be fulfilled by: (i) utilising electricity from non-fossil sources; or (ii) purchasing renewable energy certificates (RECs) from generators through competitive bidding on power exchanges. RECs are issued to generators for supplying electricity from renewable sources. Key features of the guidelines include:

(i) Design of VPPA: A VPPA is intended to be a bilateral contract between a renewable energy generating station (REGS) and a designated consumer for at least 1 (one) year on mutually agreed terms and conditions. REGS shall be allowed to sell the electricity component through power exchange or any other mode authorised under the Electricity Act, 2003, or the Power Market Regulations, 2021, and such sale shall be for purposes other than for RCO compliance. The RECs received thereby shall be transferred to the designated consumer who can use such RECs for RCO compliance

The VPPA for RCO compliance shall be non-tradable and non-transferable, and the contracting parties shall be bound by the contract terms for the entire period of the contract. In case of a change of ownership, the responsibilities of REGS under the VPPA shall be transferred, as per applicable laws.

(ii) Payment terms: The generator and the designated consumer will decide a mutually agreed price. Difference between the price realised through sale and the pre-agreed price will be settled bilaterally in accordance with agreed terms and conditions.

(iii) Dispute settlement: The guidelines specify that a dispute will be mutually settled as per the contract.

Scheme for promotion of manufacturing of rare earth magnets introduced

On November 26, 2025, the Ministry of Heavy Industries introduced a scheme to promote manufacturing of sintered rare earth permanent magnets (REPM).[6] Key features of the scheme are as follows:

(i) Objective: The scheme aims to establish India’s first REPM manufacturing ecosystem with a total capacity of 6,000 (six thousand) metric tons per annum (MPTA) to strengthen self-reliance in critical inputs for electric vehicles, renewable energy, electronics, aerospace, and defence sectors.

(ii) Financial outlay: The scheme has a total financial outlay of approximately USD 809.34 million, with sales linked incentives of approximately USD 717.07 million on the sale of REPMs for a period of 5 (five) years, and a capital subsidy of approximately USD 83.38 million for setting up integrated manufacturing facility. The incentives are designed to encourage domestic production across the entire value chain, from rare earth oxides to finished magnets.

(iii) Implementation: The scheme will be implemented through a global competitive bidding process, under which 5 (five) beneficiaries will be selected and allocated up to 1,200 (one thousand two hundred) MTPA capacity each. The total duration of the scheme is 7 (seven) years from the date of award, including a 2 (two) year gestation period for setting up the manufacturing facilities and a 5 (five) year period for disbursement of sales-linked incentives.

Foreign Exchange Management (Borrowing and Lending) Regulations, 2018

On October 06, 2025, the RBI issued the Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025. Pursuant to such amendment, the authorised dealer banks (AD Banks) are allowed to lend in Indian Rupees to a person resident outside India being individuals and banks in Bhutan, Nepal, and Sri Lanka for cross-border trade transactions.

Amendments regarding undertaking of financial services

The RBI by notification dated December 5, 2025, has issued the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) (Amendment) Directions, 2025 (Amended Directions), amending the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025 (Directions). The Amended Directions came into effect with immediate effect from December 5, 2025.

(i) Expansion of scope for lending through group entities: The Amended Directions extend the applicability of paragraph 18(4) of the Directions (which prescribes conditions that are applicable to banks where lending business is undertaken through a group entity) to all non-banking financial companies (NBFCs) and housing finance companies (HFCs) that form part of a bank group. Key compliances include stipulations on advances, and limits per borrower for loans and advances against shares, debentures and bonds and Indian depository receipts, initial public offering financing and employee stock ownership plan financing.

(ii) Key definitions introduced:

(a)  Agency Business’ are defined as an arrangement under which a bank or its group entity acts as an agent of a third-party product or service provider (TPPSP), without risk participation, to facilitate the sale of regulated financial products or services. Activities may include marketing, sales, promotion, acting as the initial point of contact for grievance redressal, and after-sales services.

(b)  ‘Group Entity’ are defined to include subsidiaries, joint ventures, and associates of a bank. Entities held under a non-operative financial holding company (NOFHC) are expressly excluded from being treated as group entities for the purposes of the Amended Directions.

(c) ‘Referral Services’ are clarified to permit banks to refer customers to TPPSPs by sharing information regarding regulated products or services, subject to conditions. Banks are restricted from participating in TPPSP processes, permitting use of bank branding in TPPSP documents, or integrating TPPSP processes into bank platforms or premises, except through a simple redirect link.

(iii) Departmentalisation and business structuring requirements: All core banking activities under sections 5(b) and 6(1) of the Banking Regulation Act, 1949 (Act) are required to be undertaken either departmentally or through a group entity established under section 19 of the Act. The business of banking and acceptance of time deposits must be undertaken only departmentally, with a limited exception permitting acceptance of time deposits by an HFC where specifically allowed. The Amended Directions introduce a ‘one business–one entity’ requirement across a bank group, subject to board-approved rationale for deviations. Where lending activities are undertaken through NBFC or HFC group entities, such entities are required to comply with regulations applicable to ‘Upper Layer NBFCs’ (excluding listing requirements) and certain lending restrictions that were earlier applicable only to banks. Banks that are not in conformity with the Master Directions are prohibited from undertaking any new business in the relevant segment from April 1, 2026, and are required to submit a compliance status by March 31, 2026. Existing facilities may continue until their respective maturities. Certain financial services, including mutual fund operations, insurance activities, pension fund management, investment advisory services, portfolio management services, and broking, are required to be undertaken only through separate group entities and not departmentally.

(iv) Investment framework: The Amended Directions revise investment limits and conditions applicable to banks and bank groups, including investments in group entities, non-financial entities, asset reconstruction companies, and alternate investment funds, real estate investment trusts, and infrastructure investment trusts. Reporting of breaches of investment limits through the ‘PRAVAAH’ portal within 15 (fifteen) days is mandated. Banks not compliant with the revised investment norms are required to submit an action plan by March 31, 2026, and achieve full compliance by March 31, 2028.

Amendment to NOHFC Directions

The RBI, by notification dated December 5, 2025, issued the RBI (Non-Operative Financial Holding Company) (Amendment) Directions, 2025, amending the Reserve Bank of India (Non-Operative Financial Holding Company) Directions, 2025 (Master Directions for NOFHC). The amended directions came into effect with immediate effect.

The amended directions prescribe revised provisions governing the organisation of business activities within a bank group operating under an NOFHC structure. An NOFHC is a non-operating holding company, mandated under the RBI’s licensing framework for banks and governed by directions issued under the Reserve Bank of India Act, 1934, which holds the bank and other regulated financial services entities and does not itself undertake business activities, except as permitted by the RBI.

Under the substituted provisions, all activities permitted to a bank under section 6(1)(a) to (o) of the Banking Regulation Act, 1949 (covering core banking and related activities) are required to be undertaken by the bank itself. Certain specified financial services, i.e., mutual fund business, insurance business, pension fund management, investment advisory services, portfolio management services and broking services, are required to be undertaken only through a subsidiary, joint venture or associate held by the NOFHC, and can be carried out without prior approval of the RBI provided that the RBI is intimated within 15 (fifteen) days of the board resolution passed for undertaking such business.

For undertaking any form of business (other than those listed above), prior approval of the RBI is mandatory. The amended directions further clarify that activities not permitted to be undertaken by a bank shall likewise not be permitted to be undertaken by entities held under the NOFHC.

Amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations)

On November 19, 2025, SEBI introduced amendments to the LODR Regulations by way of SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2025 (Amendment Regulations).[7] Key highlights of the Amendment Regulations are as follows:

(i) Materiality Thresholds: A scale-based threshold mechanism has been introduced under schedule XII to classify a related party transaction (RPT) entered into by a listed company as material, where such transaction, either individually or taken together with previous transactions during a financial year, exceeds the prescribed threshold as set out below:

(ii) Significant RPTs: All RPTs shall require prior approval of the audit committee of the listed entity where such RPTs (entered into individually or taken together with previous transactions during a financial year) are transactions to which a subsidiary of the listed entity is a party, but the listed entity itself is not, and exceed: (a) 10% (ten per cent) of the annual standalone turnover of the subsidiary, as per the last audited financial statements of the subsidiary; or (b) the threshold for material related party transactions applicable to the listed entity, as specified in schedule XII of LODR Regulations.

The threshold for significant RPTs is subject to an exemption for small-value transactions based on an absolute monetary limit of approximately USD 111,173. Accordingly, where a transaction between a subsidiary and a related party (of the listed entity or the subsidiary), on an aggregate basis, does not exceed approximately USD 111,173, such transaction is not required to be placed before the Audit Committee of the listed entity for approval, even if the above thresholds are otherwise breached. Top of Form

Arbitration clause valid despite naming a disqualified arbitrator

On October 7, 2025, the Supreme Court of India (SC) in Offshore Infrastructures Limited v. M/s Bharat Petroleum Corporation Limited held that the statutory disqualification of a named arbitrator does not render the underlying arbitration agreement invalid or inoperative. The SC opined that while an arbitrator may become ineligible under section 12(5) Arbitration and Conciliation Act, 1996 (Arbitration Act) due to his relationship with the parties to, counsel of, or subject-matter, of the dispute, the arbitration clause itself shall continue to remain enforceable. The SC also observed that arbitration clauses often reflect a clear intention of the parties to resolve disputes through arbitration, and such intent cannot be defeated merely because the named arbitrator is rendered ineligible due to subsequent statutory amendments.

The SC held that section 12(5) operates to ensure neutrality and independence of arbitrators but does not extinguish the parties’ agreement to arbitrate. Instead, in such situations, courts are empowered to appoint a neutral and independent arbitrator, thereby preserving the efficacy of the arbitral process.

Valid termination of arbitration based on unregistered and unstamped sale agreement

On October 15, 2025, the Delhi High Court in Gaurav Aggarwal v. Richa Gupta upheld the termination of arbitral proceedings under section 32(2)(c) of the Arbitration Act, holding that an arbitration founded on an unregistered and unstamped agreement to sell is unsustainable. The High Court observed that the agreement to sell (ATS) forming the basis of the dispute related to the transfer of sub-leasehold rights in immovable property and therefore constituted a contract for sale under section 54 of the Transfer of Property Act, 1882. As a result, the ATS was required to be compulsorily registered and duly stamped under the Registration Act, 1908 and applicable stamp laws in Uttar Pradesh, India. Since the ATS was neither registered nor stamped, the Court held that it was unenforceable in law and could not be relied upon to sustain arbitral proceedings. The arbitral tribunal was therefore justified in terminating the arbitration under section 32(2)(c) on the ground that continuation of proceedings had become legally impossible.

Limitation period not extended due to typographical errors in an arbitral award

On October 8, 2025, the Delhi High Court in M/s TEFCIL Breweries Ltd. v. M/s Alfa Laval India Pvt. Ltd. held that mere correction of typographical or clerical errors in an arbitral award does not extend the limitation period for filing a challenge under section 34 of the Arbitration Act. The court observed that the arbitral tribunal had delivered its original award on October 17, 2017, followed by an additional award on May 18, 2018, and subsequently carried out minor clerical corrections. Rejecting the contention that limitation would commence from the date of receipt of the corrected copy, the Court held that where a section 33 application has been filed, the limitation under section 34(3) begins from the date of disposal of such application, irrespective of later clerical corrections. The court clarified that corrections which are purely typographical and do not alter the substance or reasoning of the award cannot be treated as fresh or revised awards so as to reset the limitation clock.

Arbitral award may be set aside by mutual consent

On October 17, 2025, the Delhi High Court in M/s Oyo Hotels and Homes Pvt. Ltd. & Anr. v. M/s Ashiana Manufacturing India Ltd. held that an arbitral award may be set aside by the court with the mutual consent of the parties and that the dispute may be referred to fresh arbitration under the Arbitration Act. The court affirmed that where both parties agree to the setting aside of an award, there is no legal bar to remitting the matter for fresh adjudication, whether before the same or a newly appointed arbitrator. Relying on the SC’s decision in Mutha Construction v. Strategic Brand Solutions (I) Pvt. Ltd. and consistent with its earlier precedents, the court exercised its powers to set aside the award by consent and appoint a fresh sole arbitrator, reinforcing the principle of party autonomy and the consensual foundation of arbitration under the Arbitration Act.

Labour codes implemented

On November 21, 2025, the Ministry of Labour and Employment (MLE) notified the implementation of the 4 (four) consolidated labour codes, namely the Code on Wages, 2019, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020, and the Code on Social Security, 2020 (collectively the Codes). With this notification, the Codes have come into force and collectively replace 29 (twenty-nine) Central labour legislations, introducing a unified and modern statutory framework governing wages, industrial relations, social security, and workplace safety across India.

The MLE noted that although the Codes were enacted between 2019 and 2020, their implementation follows more than 5 (five) years of stakeholder consultations and preparatory measures undertaken by the Central and State Governments. While the Codes are now in force, their full operational effect remains contingent on the notification of the corresponding rules by the centre and respective states, many of which are yet to be brought into effect, for which MLE notified draft rules on December 30, 2025, pending stakeholder objections for each Code. Nonetheless, certain authorities have already initiated administrative and compliance measures aligned with the emerging framework under the Codes, including adoption of revised definitions and beneficiary categories, particularly under the Code on Social Security, 2020. In this backdrop, employers should anticipate a phased transition and proactively undertake a review of their human resource policies, employment contracts, compliance systems, and workforce documentation to ensure timely alignment with the new labour law regime once the rule-making process is completed.

For further details on Codes please refer to:

(i) The Code of Wages: https://cms-induslaw.com/en/ind/publication/the-code-of-wages

(ii) The Code on Social Security: https://cms-induslaw.com/en/ind/publication/the-code-on-social-security

(iii) The Industrial Relations Code: https://cms-induslaw.com/en/ind/publication/the-industrial-relations-code

(iv) The Occupational Safety, Health and Working Conditions Code: https://cms-induslaw.com/en/ind/publication/the-oshwc-code

Notification of Companies (Meetings of Board and its Powers) Amendment Rules, 2025

On November 3, 2025, the Ministry of Corporate Affairs (MCA) notified the Companies (Meetings of Board and its Powers) Amendment Rules, 2025 (Amendment Rules) amending the Companies (Meetings of Board and its Powers) Rules, 2014. The amendment expands and clarifies the scope of the expression ‘business of financing industrial enterprises’ for specified categories of finance entities.[8]

The MCA clarified that, in the case of a Non-Banking Financial Company (NBFC) registered with the RBI, the expression includes the business of granting loans or providing guarantees or security for the due repayment of loans, when carried out in the ordinary course of business. Further, in respect of a finance company registered with the International Financial Services Centres Authority (IFSCA), the expression now includes activities specified under regulation 5(1)(ii)(a) and (e) of the IFSCA (Finance Company) Regulations, 2021, such as lending in the form of loans, commitments and guarantees, credit enhancement, securitisation, financial leasing, sale and purchase of portfolios, and activities relating to global or regional corporate treasury centres, when undertaken in the ordinary course of business. This amendment adds clarification that activities such as lending and giving of guarantees undertaken by NBFCs and IFSCA registered finance companies in ordinary course of business do not require a separate board approval.

Digital Personal Data Protection Rules operationalised

On November 13, 2025, India operationalized its first comprehensive digital personal data regime with the coming into force of the Digital Personal Data Protection Rules, 2025 (Rules), issued under the Digital Personal Data Protection Act, 2023 (DPDP Act).[9] With the notification of the Rules, the DPDP Act has become fully operational, establishing India’s first standalone legal framework governing the processing of digital personal data. The Rules impose stringent compliance obligations on organisations classified as data fiduciaries, including restrictions on data collection strictly to what is necessary for specified purposes, requirements for verifiable parental consent in respect of children’s data, and mandatory and prompt breach notifications to affected data principals and the regulator. The framework also provides enhanced accountability standards for entities handling sensitive and large-scale data processing. The regime has extraterritorial application, extending to entities located outside India that offer goods or services to individuals in India or engage in profiling of data principals within India. The operationalisation of the DPDP Act through the Rules marks a significant shift in India’s data protection landscape, requiring organisations to urgently review and realign their data governance, consent mechanisms, and incident response frameworks to ensure compliance.

For further details please refer to https://cms-induslaw.com/en/ind/publication/dpdp-rules-an-attempt-to-bring-order-to-the-chaos

Definition of ‘small company’ amended

The MCA has amended the definition of a ‘small company’ under section 2(85) of the Companies Act, 2013 (the Act) by increasing the paid-up share capital and turnover thresholds to approximately USD 111,146 and approximately USD 11.1 million respectively, pursuant to rule 2(1)(t) of the Companies (Specification of Definitions Details) Rules, 2014. This represents a significant enhancement from the earlier thresholds of approximately USD 444,585 and approximately USD 4.5 million and brings the limits to the maximum permitted under the Act.

Companies qualifying as small companies continue to benefit from reduced compliance requirements, including abridged filings and lower penalties, while certain entities such as holding companies, subsidiaries, section 8 companies under the Act, and entities governed by special statutes remain excluded and continue to be subject to mandatory dematerialisation under rule 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014. The revised thresholds substantially reduce the number of private companies required to dematerialise their securities, addressing operational, cost and shareholder-level challenges associated with dematerialisation. This also enables smaller companies to scale with greater regulatory flexibility, while also easing the compliance burden on depositories and market intermediaries.

Parliament passes insurance law reforms to liberalise FDI

The Parliament on December 17, 2025, passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 (Bill) amending 3 (three) Acts, The Insurance Act, 1938, The Life Insurance Corporation Act, 1956 and The Insurance Regulatory and Development Authority Act, 1999.[10] Life Insurance Corporation under this bill has been provided with autonomy to open zonal offices and align foreign offices with laws of respective jurisdictions. Key features of the Bill include:

(i) Foreign direct investment (FDI): 100% (one hundred percent) FDI permitted in insurance companies allowing more foreign player participation.

(ii)  Licensing: One time licensing introduced for ease of doing business and provisions for suspension of license instead of cancellation.

(iii) Regulatory approval threshold: Transfer of share capital requiring regulatory approval has an increased threshold of 5% (five percent) from previous 1% (one percent) and the net owned fund requirement for foreign reinsurance branches has been reduced from approximately USD 600 million to approximately USD 120 million.

(iv) Policyholder protection and governance: Introduction of a dedicated Policyholders’ Education and Protection Fund to enhance insurance awareness and mandate alignment of policyholder data practices with the DPDP Act, 2023. Insurance Regulatory and Development Authority of India has been given powers to disgorge wrongful gains from insurers and intermediaries and penalties are being rationalised and factors for imposition of penalties are being introduced.

1. South Korea’s HS Hyosung India Pvt. Ltd. plans to establish a new tyre-cord manufacturing facility with 1,500 (one thousand five hundred) ton per month capacity at Additional Butibori (Nagpur), investing about approximately USD 174 million under a memorandum of understanding (MoU) with the Maharashtra government. The plant will help meet roughly half of India’s current tyre‐cord demand and is expected to begin construction once the state issues the formal offer letter.[11]

[1] Central Drugs Standard Control Organization (CDSCO), Circular on Requirement of License issued by CDSCO/State Licensing Authorities in procurement of medical devices by procurement agencies, Ministry of Health and Family Welfare, dated 17 Nov 2025, available at https://cdsco.gov.in/opencms/resources/UploadCDSCOWeb/2018/UploadCircularFile/Circular-17-11-2025.pdf, last accessed 8 Jan 2026.

[2] Press Information Bureau, ANRF, in collaboration with ICMR and Gates Foundation, launches Maha MedTech Mission; Maha MedTech Mission to Strengthen India’s Medical Technology Ecosystem, Ministry of Science & Technology, dated October 25, 2025, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2182432&reg=3&lang=2, last accessed January 8, 2026.

[3] Ministry of Petroleum and Natural Gas, Petroleum and Natural Gas Rules, 2025, G.S.R. 888(E), The Gazette of India: Extraordinary (Part II — Section 3(i)), dated 09 Dec 2025, available at https://mopng.gov.in/files/Whatsnew/2025-12-19-163402-29rio-PNG-Rules,-2025.pdf, last accessed 08 Jan 2026. 

[4] Ministry of Law and Justice (Legislative Department), The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025, Act No. 39 of 2025, dated 20 Dec 2025, available at https://prsindia.org/files/bills_acts/bills_parliament/2025/The_SHANTI_Act_2025.pdf, last accessed 08 Jan 2026.

[5] Central Electricity Regulatory Commission, Guidelines for Virtual Power Purchase Agreements, CERC No. L-1/257/2020/(PMR-4)/CERC, dated 24 December 2025, available at https://cercind.gov.in/regulations/Guidelines-VPPA.pdf , last accessed 08 Jan, 2026.

[6] Press Information Bureau, Cabinet Approves Rs.7,280 Crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM), Government of India, dated 26 Nov 2025, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2194684&reg=3&lang=2, last accessed 08 Jan 2026.

[7] Securities and Exchange Board of India, (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2025, dated November 19, 2025, available at https://www.sebi.gov.in/legal/regulations/nov-2025/securities-and-exchange-board-of-india-listing-obligations-and-disclosure-requirements-fifth-amendment-regulations-2025_97840.html, last accessed November 30, 2025.

[8] International Financial Services Centres Authority (IFSCA), Companies (Meetings of Board and its Powers) Amendment Rules, 2025, Notification No. G.S.R. 811(E), dated 03 Nov 2025, available at https://ifsca.gov.in/CommonDirect/GetFileView?id=38fea9cc5969551d78bf00e67000566d&fileName=Companies__Meetings_of_Board_and_its_Powers__Amendment__Rules__2025__1__20251121_0509.pdf, last accessed 08 Jan 2026.

[9] Press Information Bureau, Government notifies DPDP Rules to empower citizens and protect privacy, Ministry of Electronics & Information Technology, dated 14 Nov 2025, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2190014&reg=3&lang=2, last accessed 8 Jan 2026.

[10] Press Information Bureau. “The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 passed by Parliament; allows up to 100% FDI in insurance companies.” Press Release ID: 2206011 (Ministry of Finance, Government of India). Press Information Bureau, New Delhi, 18 Dec 2025. Available at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2206011&reg=3&lang=1, last accessed 8 Jan 2026.

[11] Shishir Arya, S Korean Co’s Desi Arm Plans 1500-T/Month Tyre Cord Capacity Plant in Addl Butibori, Times of India, dated 11 Dec 2025, available at https://timesofindia.indiatimes.com/city/nagpur/s-korean-cos-desi-arm-plans-1500-t/month-tyre-cord-capacity-plant-in-addl-butibori/articleshow/125896819.cms, last accessed 08 Jan 2026.