General Updates
Union Budget for financial year 2025-2026 presented
The Ministry of Finance has presented the budget and key highlights of the same include Revisions in income tax slabs; Credit Cards for Micro Enterprises; Special scheme for first time Entrepreneurs; Classification Criteria for Micro, Small & Medium Enterprises (MSMEs) have been revised; Streamlined e-visa facilities; 100 % Foreign Direct Investment in insurance sector; Jan Vishwas Bill 2.0 for decriminalization of various laws; Rationalisation of Customs Tariff Structure for Industrial Goods; Introduction of a scheme for determining arm's length price of international transaction; Expansion of scope of safe harbour rules amongst many.
100% Foreign Direct Investment ("FDI") allowed in Insurance Sector
With the goal to increase foreign investments, enhance competition and improve accessibility of insurance facilities to people, the Ministry of Finance as per recent announcement has allowed the 100% FDI in insurance sector to companies investing their entire premium in India.
Draft E-Commerce-Principles and Guidelines for SelfGovernance ("Draft Guidelines") released
The Bureau of Indian Standards has released the Draft Guidelines for public comments and inputs. Some of the significant highlights include three-phase principles (pre-transaction; contact formation and post transaction stage); prohibition on preferential treatment towards sellers/service providers; obligation on seller to provide accurate product descriptions and content; adherence to data protection, privacy, anti-money laundering, and other financial regulations; periodic seller review and compliance with IS 19000:2022 standards for consumer.
Drug regulator bans illegal imports of refurbished medical equipment
India's pharmaceuticals regulatory authorities have banned the importation of unregulated reconditioned medical gadgets and directed the customs authorities to strictly adhere to this restriction.
Duty-free import scheme for diamonds introduced
The Diamond Imprest Authorization Scheme allows duty-free imports of natural and polished diamonds under 0.25 carats. The initiative requires a 10% value addition for exports and seeks to enhance diamond exports while supporting Micro, Small and Medium Enterprises ("MSME") exporters. It will become effective from 1 April 2025.
Drafts rules released for Nationwide Adoption of Indian Standard Time ("IST")
The Ministry of Consumer Affairs has proposed the Draft Legal Metrology (Indian Standard Time) Rules, 2024 for public comments, mandating the exclusive use of IST for all official and commercial purposes. This measure is to ensure that time keeping in critical national infrastructure such as telecommunications, banking, defence and emerging technologies is accurate.
Protection and Enforcement of Interests in Aircraft Objects Bill, 2024 ("2024 Bill") approved
The Union Cabinet passed the 2024 Bill which allows airplane leasing companies to recover their aircrafts in case of lease failure by airlines, thereby giving a legal backing to lessors and boosting confidence in India's aviation industry.
Corporate Law Updates
Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Third Amendment) Regulations, 2025
The Reserve Bank of India ("RBI") has amended the Foreign Exchange Management (Mode of Payment and Reporting of NonDebt Instruments) Regulations, 2019. The amendments allow start-ups issuing convertible notes to non-residents to receive consideration and credit repayment or sale proceeds through Rupee accounts maintained under the Foreign Exchange Management (Deposit) Regulations, 2016.
Further, the RBI revised sub-regulation to permit payment of consideration for equity instruments, including equity swaps, via inward remittance or Rupee accounts. Refunds on non-issuance and sale proceeds (net of taxes) can also be processed through such Rupee accounts.
The Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Fifth Amendment) Regulations, 2025
Under the amended regulations, an Indian exporter can open and maintain a foreign currency account with a bank outside India to receive export proceeds and advance remittances for future exports. These funds can be used for import payments or repatriated to India by the end of the next month after adjusting for forward commitments.
The Foreign Exchange Management (Deposit) (Fifth Amendment) Regulations, 2025
Under the amended regulations, a non-resident with business interests in India can open a Special Non-Resident Rupee ("SNRR") Account with an authorised dealer in India or its overseas branches for permissible transactions. Additionally, International Financial Service Centre ("IFSC") units under relevant provisions of the SEZ Act, 2005, can open an SNRR Account with an authorised dealer outside IFSC for business-related transactions.
Settlement Norms for Dormant Trading Accounts eased
The Securities and Exchange Board of India ("SEBI") has relaxed regulations regarding the settlement of monies in trading accounts that have been dormant for more than 30 (thirty) days. The updated regulations seek to streamline settlement processes for market players while safeguarding investors' interests. The funds are now required to be returned on the next monthly settlement date instead of within 3 (three) working days.
Deadline to file e-forms for liquidation and voluntary liquidation processes extended
The Insolvency and Bankruptcy Board of India has prolonged the deadline for insolvency professionals to submit electronic forms pertaining to liquidation and voluntary liquidation procedures. The revised deadline is 31 March 2025.
Labour Law Updates
Procedure for transfer of provident fund account simplified
Employees' Provident Fund Organization ("EPFO") has simplified the process of transferring provident fund account of a member on change of employment, by dispensing the requirement of routing the online transfer claim through either the past or present employer.
EPFO rolls out Centralised Pension System ("CPPS") for Seamless Access
EPFO has completely executed the new CPPS under the Employees' Pension Scheme (EPS), signifying a significant advancement in pension distribution.
Order issued by Delhi Government under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act")
The Delhi Government has directed all 'District In-charge (JLC and DLCs) and DISH to sensitise and seek information from employers under their jurisdiction regarding constitution of Internal Complaint Committee and also inform them about She Box Portal (online complaint portal by Ministry of Women and Child).
Karnataka Labour Welfare Fund (Amendment) Act, 2024 ("2024 Act") notified
Karnataka Labour Welfare Act, 1965 has been amended by 2024 Act. The contribution rates have been revised from INR 20, INR 40 and INR 20 to INR 50, INR 100 and INR 50 respectively – with effect from 10 January 2025. The payments for labour welfare funds for calendar year 2024 continues to be calculated at existing rates (before amendment).
Leave encashment is a property
The High Court of Gujarat has promulgated that leave encashment akin to salary is a property and depriving a person from the same without valid statutory provision is violation of the provision of Constitution of India. If an employee has earned the leave and chosen to accumulate his earned leave to his/her credit, then encashment becomes his right and in absence of any authority that right cannot be infringed by the petitioner corporation.
Intellectual Property Updates
Damages tuning to INR 48 Lakhs (US$ 61,000) granted against habitual infringer
A district court in New Delhi has granted damages amounting to INR 48 Lakhs (US$ 61,000) to Plaintiffs in a trademark infringement suit. The court noted that Defendants were habitual infringers and despite being warned previously on multiple times, the Defendants resumed selling infringing goods, using similar color combinations, writing styles, packaging, and trade dress.
Court clarifies differences between patent revocation petitions and invalidity defences in patent infringement proceedings
The Delhi High Court clarified that an invalidity petition does not result in removal of a patent from the Patent Register but merely grants a defence to protect the Defendant, whereas a revocation results in the expunging of a Patent, as if it never existed. The court also clarified that even though the Patent in question expired, the cause of action to sue was still surviving, and hence the cause of action to file a revocation petition should survive as well.
Case Laws
Clarity issued on the calculation of Limitation period in filing Appeal against the Arbitration Award
The Supreme Court of India has ruled that a party appealing against the Arbitral award cannot simultaneously claim benefit of relevant provisions of the General Clauses Act, 1897 which gives benefit to a party when the limitation to file an appeal/institution of a case expires on a court holiday. The provisions of Limitation Act, 1963 regarding expiry of prescribed period when court is closed will be applicable in appeal procedure under Arbitration and Conciliation Act, 1961.
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