Key Developments in Indian Corporate & Securities Law

India’s corporate law landscape is evolving rapidly—a blend of regulatory reforms, enforcement moves, and market developments. Here are some of the most significant developments as you head into October 2025:

1. SEBI Extends Timeline for Retail Algorithmic Trading Rollout

SEBI (Securities and Exchange Board of India) has extended the deadlines for implementation of algorithmic (algo) trading access for retail investors. 

• Brokers must register at least one algo strategy by October 31, 2025, and complete full API-based product registrations by November 30, 2025.
  
• New rules require prior approval of each strategy, unique identifiers for orders, and participation in mock trading by January 3, 2026.
  
• If a broker fails to comply, they will be barred from onboarding new retail clients for API-based algo trading after January 5, 2026.
  

This extension gives market intermediaries breathing room to upgrade technology, but raises questions about enforcement and consistency across brokers.

2. RBI Eases Corporate Credit Norms, Lifts Exposure Caps

The Reserve Bank of India has announced sweeping measures to invigorate corporate credit flows and support consolidation in industry. 

• Banks will now be allowed to finance mergers and acquisitions (M&A), removing earlier constraints.
  
• The exposure cap on loans against shares and listed debt securities has been increased fivefold, now up to ₹1 crore.
  
• The changes are expected to unlock a potential ₹5 lakh crore in additional lending demand.
  

Analysts say these reforms can re-energize capital markets and support rational consolidation, especially in stressed sectors.

3. SEBI Weighs Regulation of Family Offices

SEBI is reportedly considering bringing family offices under a formal regulatory framework. 

• Proposals under discussion include mandatory disclosure of their entities, assets, investment returns, and establishing a distinct regulatory category for them.
  
• The move aims to increase transparency over how high-net-worth groups invest in publicly traded securities.
  
• Critics argue it may impose burdensome compliance on what were traditionally private investment vehicles.
  

If implemented, this could reshape how major corporate families manage and disclose holdings, especially in listed entities.

4. SEBI Mandates Promoter In-Law Disclosures

SEBI has clarified that listed companies must now disclose shareholding of promoter relatives, including in-laws and their entities, even if they do not hold direct ownership. 

• The requirement covers spouse’s parents, in-laws, and entities where these relatives hold more than 20% shareholding—even if such persons have no direct stake in the listed company.
  
• The directive has drawn criticism: many say it’s impractical, disproportionately invasive, and complicates compliance.
  

This step reflects SEBI’s push for deeper promoter transparency, but is likely to provoke legal and administrative pushback from listed entities.

5. Rights Issue Process Significantly Simplified

SEBI has introduced a revised framework for rights issues that accelerates timelines and reduces procedural burden. 

• Rights issues now must be completed within 23 working days from board approval—a sharp contraction from the earlier 4–6 month cycles.
  
• The new model eliminates the requirement for a draft letter of offer, replacing it with a concise Letter of Offer.
  
• The share allotment and bid validation steps are now automated by exchanges and depositories.
  
• The role of merchant bankers is trimmed; promoters may directly allocate unsubscribed shares to anchor or specified investors.
  

These changes are expected to reduce delays, cut costs, and make rights issues more accessible, especially for mid-sized companies.

6. Parliamentary Changes: Income-Tax Act, 2025 Passed

The new Income-Tax Act, 2025 has been passed by Parliament and will become effective from April 1, 2026. 

• The Act consolidates and modernizes India’s direct tax regime across 536 sections and 23 chapters.
  
• It aims to reduce litigation, simplify compliance, and integrate tax law with corporate and commercial regulations.
  

Corporate legal teams will need to prepare for its implementation well in advance, especially because of overlapping obligations in corporate, tax, and investment domains.

7. New Maritime & Shipping Laws Introduced

Two major bills—the Merchant Shipping Act, 2025 and the Carriage of Goods by Sea Act, 2025—seek to overhaul India’s maritime regulation. 

• The Merchant Shipping Act, 2025 replaces the 1958 statute, aligning domestic law with international conventions on safety, environment, seafarer welfare, registration, and digital procedures.
  
• The Carriage of Goods by Sea Act, 2025 updates rules on bills of lading, responsibilities of carriers/shippers/consignees, and harmonizes with international norms.
  

These reforms are aimed at boosting India’s shipping sector competitiveness, simplifying legal frameworks, and attracting maritime trade.

8. SEBI Orders & New Tools: “Validated UPI Handles” & Exemptions

• On October 1, 2025, SEBI rolled out “Validated UPI Handles” and “SEBI Check” tools to enhance security in investor payments.
  
• On the same day, SEBI issued exemption orders under Regulation 11 (SAST) for Acutaas Chemicals Limited, bringing clarity in takeover law for family or trust holdings.
  

These moves reflect SEBI’s attempt to inject tech and flexibility into disclosure and regulatory regimes.