We are pleased to share with you the link to our newsletter on the latest GST and Customs Developments. The newsletter covers recent judgments and regulatory updates in the GST and Customs space in India.
We trust that you will find the same useful.
Looking forward to receiving your valuable feedback.
For any clarification, please write to:
Mr. Shammi Kapoor
Senior Partner
[email protected]
Mr. Arnab Roy
Partner
[email protected]
In the August edition of our monthly newsletter “Legalaxy”, our team analyses some of the key developments in securities market, banking and finance, corporate affairs, labour, environment and information technology.
Below are the key highlights of the newsletter:
SEBI UPDATES
RBI & IFSC UPDATES
LABOUR UPDATES
ENVIRONMENTAL UPDATES
OTHER UPDATES
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In a move aimed at enhancing transparency and stakeholder confidence, the IBBI has notified key amendments to the CIRP Regulations effective July 5, 2025. The amendments place a continuous obligation on the Resolution Professional to provide updates to the Information Memorandum and mandate the disclosure of all identified avoidance transactions (PUFE) within the IM itself.
The amended Regulation 38(2A) further provides a restriction on resolution plans from assigning PUFE transactions if not disclosed prior to plan submission, unless the plan has already been filed before the Adjudicating Authority. This marks a significant shift in the compliance landscape for CIRPs and strengthening procedural fairness.
Click here to read more about the amendment: https://lnkd.in/g2ivNHMG
We hope you like our publication. We look forward to your suggestions.
Please feel free to contact us at [email protected]
We are pleased to share with you the link to our newsletter on the latest GST and Customs Developments. The newsletter covers recent judgments and regulatory updates in the GST and Customs space in India.
We trust that you will find the same useful.
Looking forward to receiving your valuable feedback.
For any clarification, please write to:
Mr. Shammi Kapoor
Senior Partner
[email protected]
Mr. Arnab Roy
Partner
[email protected]
Reserve Bank of India (“RBI”), vide its notification dated July 29, 2025, has issued the RBI (Investment in Alternative Investment Funds) Directions, 2025 (“AIF Directions”) by repealing its erstwhile circulars on Investments in Alternative Investment Funds (“AIFs”) dated December 19, 2023 and March 27, 2024, respectively (collectively referred to as the “AIF Circulars”). The AIF Directions, effective from January 1, 2026 (or an earlier date as determined by the RE in accordance with its internal policy), outline the regulatory guidelines governing investments by Regulated Entities (“REs”) in AIFs. Additionally, it mandates REs to ensure that their investment policies include suitable provisions for investments in an AIF scheme, in compliance with applicable laws and regulations.
The key highlights of the AIF Directions include:
(a) Applicability: The AIF Directions apply to REs, including commercial banks (such as small finance banks, local area banks, and regional rural banks), co-operative banks (comprising primary urban, state, and central co-operative banks), all-India financial institutions, and NBFCs, including housing finance companies, making investments in units of AIF schemes.
(b) Investment Limits: Individual REs are barred from contributing to more than 10% of the AIF scheme’s corpus, with collective contribution by all REs being capped at 20% of such corpus. However, these investment limits will not apply in case outstanding investments or commitments are made by a RE with prior approval from RBI under RBI’s “Master Direction – RBI (Financial Services provided by Banks) Directions, 2016”.
(c) Provisioning Requirements: If a RE invests more than 5% in an AIF scheme corpus, which also has downstream investment (excluding equity instruments) in RE’s debtor company, the RE must make a 100% provision for its proportionate investment in the debtor company, subject to a maximum of the direct loan and/ or investment exposure to that debtor. Additionally, if RE’s contribution in an AIF scheme is in the form of subordinated units, it shall deduct the entire investment from its capital funds, proportionately from both tier-1 and tier-2 capital, as applicable.
(d) Exemptions: RBI may, in consultation with the Government of India, exempt certain AIFs from the scope of the AIF Circulars and the AIF Directions, except for the requirement mandating REs to have in place appropriate investment policies governing its investments in an AIF scheme.
(e) Repeal clause: Post January 1, 2026, any new commitments by REs for contribution to an AIF scheme, must comply with the AIF Directions. However, outstanding investments by REs in an AIF scheme (as on the date of issuance of the AIF Directions i.e., July 29, 2025), wherein it has fully honoured its commitment, will continue to be governed by the AIF Circulars. Furthermore, for ongoing investments or commitments made in an AIF scheme before January 1, 2026, REs may choose to follow the provisions of either the AIF Circulars or the AIF Directions, in its entirety.
To read the AIF Directions click here
For any clarification, please write to:
Mr. Yatin Narang
Partner
[email protected]
In a significant judgment, the Hon’ble NCLAT has addressed key issues on the intersection of the Insolvency and Bankruptcy Code, 2016 and the Prevention of Money Laundering Act, 2002. In Anil Kohli (RP for Dunar Foods Ltd) vs Directorate of Enforcement, the Tribunal held that provisional attachment of assets under the PMLA does not violate the moratorium under Section 14 of the IBC, nor does the IBC override the PMLA in respect of tainted assets.
The ruling further clarifies that NCLT/NCLAT lack jurisdiction to interfere with attachments confirmed under PMLA and that such assets lie outside the resolution estate. This judgment may reshape resolution strategies where law enforcement actions intersect with insolvency proceedings and emphasizes the need for careful due diligence by resolution applicants.
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