The past quarter witnessed several regulatory and legislative developments such as the liberalisation of FDI investment limits in the insurance sector, announcement of reforms for the telecom sector and relaxation of compliance requirements for limited liability partnerships.
While dispute resolution in India has still been reeling under the pressures of the pandemic, the Supreme Court has been active in issuing seminal judgments in the realm of commercial law. It has also continued to address the changing needs of the litigants through the pandemic.
The preceding quarter was a mixed bag for each of these sectors. While some of the developments were a step in the right direction, others could potentially limit the growth of the relevant sector.
While India was bracing to tackle the second wave of Covid-19, the second quarter also witnessed businesses gearing up to resume operations amidst vaccination requirements imposed by various State governments.
The last quarter saw the introduction of certain new regulations by the RBI geared towards development of the securitisation market in India and by the SEBI to boost corporate debt markets. There was also traction in the insolvency resolution space with some notable judicial pronouncements.
Previous quarter witnessed some important legal and regulatory developments in the financial services space with SEBI proposing to shift from the current T+2 settlement cycle to T+1 settlement cycle for trading, and RBI clarifying its position on customer due diligence processes for trading in virtual currencies as well as introducing measures to strengthen the security of digital payments in the country.
Indian capital markets continued to see significant activity in the previous quarter. SEBI overhauled its regulations governing the issuance of debt securities and streamlined the requirements for issuance of capital, disclosure and listing, while IFSCA notified regulations to provide a framework for accessing capital markets through IFSC stock exchanges.
During the last quarter, there have been several important regulatory enforcement actions globally, with implications for in-house legal teams and compliance officers. On the domestic front, the Institute of Chartered Accountants of India has released a compendium of forensic accounting and investigation standards.
The previous quarter saw some interesting developments such as the withdrawal of retrospective application of tax provisions for indirect transfers, tax sops to facilitate strategic disinvestment and extension of due dates for certain filings.
Some of the notable developments in this quarter on the indirect tax front include the scheme for remission of duties and taxes on exported products, recommendations by GST Council on intermediary services and the Supreme Court’s decision on refund of unutilised ITC from input services.