Regulatory Updates: Key Legal and Policy Developments

A round-up of significant regulatory and policy developments across foreign investment, corporate, securities, insolvency, industrial-policy and employment law during July 2026, together with the compliance points most relevant to our clients.

FDI liberalised for export-focused inventory-based e-commerce

Press Note 3 (2026 Series) · DPIIT · 23 July 2026

The Department for Promotion of Industry and Internal Trade (“DPIIT”) has carved out an exception to the longstanding bar on FDI in inventory-based e-commerce, permitting foreign investment in Indian entities that operate an inventory-based model solely for the export of goods manufactured or produced in India. The change becomes legally operative only once a corresponding notification is issued under FEMA amending the Non-Debt Instruments Rules; until then, the existing restrictions continue to apply. The development is relevant to e-commerce, manufacturing-export and cross-border investment structuring. Read the press note.

CCFS-2026 filing-relief window extended to 31 August 2026

General Circular No. 03/2026 · MCA · 8 July 2026

The Ministry of Corporate Affairs has extended the Companies Compliance Facilitation Scheme (“CCFS-2026”) filing-relief window from 15 July to 31 August 2026, citing the ongoing restoration of the MCA21 data centre following a fire on 5 June 2026. Companies with pending filings should use the extended window to regularise their position. Read the circular.

New CUSPA framework for clients’ unpaid securities

Circular No. HO/38/11/(9)2026-MIRSD-POD/I/15382/2026 · SEBI · 3 July 2026

SEBI has amended Paragraph 46 of the Master Circular for Stock Brokers, overhauling the framework by which Trading Members auto-pledge and manage clients’ unpaid securities through a Client Unpaid Securities Pledgee Account (“CUSPA”), and prohibiting the pledge or transfer of CUSPA securities to banks or NBFCs to raise funds. Paragraphs 46.1–46.11 take effect three months after the stock exchanges issue the prescribed operational guidelines, while the exceptional-extension provisions under Paragraphs 46.12–46.14 take effect six months from the date of the circular. Read the circular.

Proposed changes to CIRP, Liquidation and Personal Guarantor regulations

Discussion Paper · IBBI · 2 July 2026

The Insolvency and Bankruptcy Board of India has released a discussion paper proposing amendments to the CIRP Regulations, the Liquidation Regulations and the Personal Guarantor to Corporate Debtor Regulations, aimed at closing procedural gaps and aligning with the Insolvency and Bankruptcy Code (Amendment) Act, 2026. The proposals address registered-valuer appointments, the removal of interim-moratorium protection in certain scenarios, resolution-professional obligations pending withdrawal applications, and easing the administrative burden on liquidators in relation to stakeholder-list modifications. Read more.

Cabinet approves ‘Semicon 2.0’ for India’s semiconductor sector

Union Cabinet / PIB · 15 July 2026

The Union Cabinet has approved “Semicon 2.0”, extending long-term policy support for semiconductor manufacturing in India and building on the earlier India Semiconductor Mission. The approval is relevant to clients advising on manufacturing incentives, PLI-adjacent schemes and technology-sector investment structuring. Read the announcement.

Employees’ Enrolment Campaign, 2026 — amnesty for lapsed EPF coverage

Employees’ Enrolment Campaign (EEC) · EPFO · 8 July 2026

EPFO has notified the Employees’ Enrolment Campaign, 2026, giving employers a one-time window (1 July – 31 October 2026) to voluntarily declare employees left uncovered between April 2009 and March 2026, with the employee’s share waived and a nominal damage fee of ₹100 per establishment. Employers must generate Aadhaar-linked UANs and route contributions via ECR/TRRN. This is a high-relevance compliance opportunity for MSME, start-up and high-growth-headcount employers to regularise historical provident-fund contribution gaps before the window closes. Read the circular.

‘Specified fund’ definition expanded for GIFT-IFSC structures

Bullion-Market Circular Amendment · IFSCA · Effective 21 July 2026

An amendment to IFSCA’s bullion-market circular framework has widened the definition of a “specified fund” operating in GIFT-IFSC, expanding eligibility to Category I and II Alternative Investment Funds structured as a trust, company, LLP or body corporate. The change is significant for fund managers, AIFs and Fund Management Entities structuring IFSC vehicles and aligning with India’s evolving tax treatment of such funds. Read more.

This update is intended for general information only and does not constitute legal advice. For advice on how any of these developments may affect your business, please contact WhiteStone Legal.