Page 6 – Vaish Associates Advocates

IBC Update: NCLAT Holds- Provisional Attachments of Assets by ED Under PMLA Do Not Violate Moratorium under IBC

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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ITAT Rules Capital Gains on Equity-Oriented Mutual Funds Not Taxable Under India-Mauritius DTAA

In a crucial ruling, the Delhi Bench of the ITAT held that capital gains arising from the sale of equity-oriented mutual funds by a Mauritius-based FII are not taxable in India under Article 13(3A) of the India-Mauritius DTAA. The Tribunal observed that such gains cannot be equated with gains from the alienation of “shares” as mutual fund units are a distinct class of securities under Indian law and thus, not covered under the said Article. The ruling reinforces the principle of strict interpretation of DTAA provisions.

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Legalaxy – Monthly Newsletter Series – Vol XXVI – July, 2025

In the July edition of our monthly newsletter “Legalaxy”, our team analyses some of the key developments in securities market, banking and finance, corporate affairs, labour and consumer affairs.

Below are the key highlights of the newsletter:

SEBI UPDATES

SEBI extends timeline of additional liquidation period for VCFs migrating to the SEBI (AIF) Regulations
SEBI revises industry standards on RPTs by listed entities
SEBI issues framework for ESG debt securities
SEBI provides limited relaxation from compliance with certain provisions of the LODR Regulations

IFSC UPDATES

IFSCA amends the framework for finance company/ finance unit undertaking the activity of GRCTC
IFSCA amends directions to IBUs for operations of FCA of Indian residents opened under LRS

CORPORATE UPDATES

NSDL notifies additional compliance for off-market share transfers of private companies
MoF notifies amendments to the Foreign Exchange Management (Non-Debt Instruments) Rules

LABOUR UPDATES

Rest intervals revised for factories in Andaman and Nicobar Islands
Tamil Nadu modified the penalty provisions under its Shops and Establishments Act
Punjab extends 365 days operational approval for establishments by one year

OTHER UPDATES

E-commerce platforms advised to conduct self-audits to identify dark patterns
MCA notifies the revised Form AOC-4 XBRL, CRL-1 and INC-22A

We hope you like our publication. We look forward to your suggestions.

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Customs and GST Alert – July 2025

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]

SEBI Notifies Change in Certification Requirement in the Key Investment Team of AIF

Securities and Exchange Board of India (“SEBI”), vide its notification dated May 10, 2024, had notified that at least one key personnel, amongst the associated persons functioning in the key investment team of the investment manager of an Alternative Investment Fund (“AIF”), had to obtain certification from the National Institute of Securities Market (“NISM”) by passing the ‘NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination’ in terms of Regulation 4(i)(g) of the SEBI (AIF) Regulations, 2012. The said certification requirement was common for all categories of AIFs.

Now, SEBI, vide its notification dated June 25, 2025, has modified certification requirements for key investment team members of AIFs.

For Category I and II AIFs, at least one key personnel, amongst the associated persons functioning in the key investment team of the investment manager of Category I AIF and/or Category II AIF, shall obtain certification from NISM by passing either:

the ‘NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination’ or
the ‘NISM Series-XIX-D: Category I and II Alternative Investment Fund Managers Certification Examination’.

For Category III AIFs, at least one key personnel, amongst the associated persons functioning in the key investment team of the investment manager of Category III AIF, shall obtain certification from NISM by passing either:

the ‘NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination’ or
the ‘NISM Series-XIX-E: Category III Alternative Investment Fund Managers Certification Examination’.

The AIFs existing as on the date of publication of this notification, shall obtain requisite certification on or before July 31, 2025. The SEBI notification dated May 10, 2024 shall stand rescinded with the publication of this notification.

To read the notification click here

For any clarification, please write to:

Mr. Yatin Narang
Partner
[email protected]

Legalaxy – Monthly Newsletter Series – Vol XXV – June, 2025

In the June edition of our monthly newsletter “Legalaxy”, our team analyses some of the key developments in securities market, corporate affairs, banking and finance, labour, environment and consumer affairs.

Below are the key highlights of the newsletter:

SEBI UPDATES

SEBI extends timeline for complying with the certification requirement for the key investment team of the AIF manager
SEBI clarifies investment scope for Category II AIFs
SEBI introduces amendments to master circular for InvITs
SEBI tweaks provisions pertaining to electronic book provider platform

RBI & IFSC UPDATES

Relaxations in investments by FPIs in corporate debt securities through the general route
RBI issues Digital Lending Directions, 2025 to strengthen consumer protection and data governance
Reporting of issuance of partly paid units by investment vehicles on FIRMS portal
IFSCA issues framework to facilitate co-investment by venture capital scheme and restricted scheme
IFSCA extends timeline for appointment of custodian under the FM Regulations

CORPORATE UPDATES

Extension of deadline to file Form CSR-2 – Notified
Substitution of company forms and additional disclosure requirements under financial statement and board’s report – Notified

LABOUR UPDATES

Haryana publishes conditions for employing women in night shifts
Tamil Nadu permits all shops and establishments to keep open for 24×7 for a further period of 3 years
Tripura Government amends the Tripura Shops and Establishments Act, 1970
Andaman and Nicobar Islands revise the daily hours in factories

ENVIRONMENTAL UPDATES

Biological Diversity (Amendment) Rules, 2025 – Notified
Extension of return filing deadline under the E-Waste (Management) Rules, 2022

OTHER UPDATES

Rule 8 of the Securities Contracts (Regulation) Rules, 1957 – Amended
Credit Guarantee Scheme for startups
FSSAI advisory on discontinuation of “100%” claims in food labelling and advertising

We hope you like our publication. We look forward to your suggestions.

Please feel free to contact us at [email protected]