Volume #18 | IssueNo. 326/2026 | July 2026
Opening new doors
“Disability does not defeat the indomitable human spirt of Hope, Happiness & Humaneness”. 3 individuals. 3 stories that will inspire and make your day !
Let me begin with the uncelebrated one first :
- Achievement to Aims : Imagine this. You are at the peak of your life. Your corporate career is zooming. You have a loving family. You have a baritone voice like Amitabh Bacchan. A disarming smile. Handsome personality. Your dance moves can put any Bollywood hero to shame. You can sing a song for every occasion. You love organizing mega events and holding audiences together. You are a shameless sales guy who can make relentless calls to that elusive, marque customer to get that one top order. You are at ease with people – whether talking assertively to a cricketing legend or communicating through technology to thousands of team members across the globe.
Suddenly you meet with an unfortunate accident. Life turns topsy-turvy. Everything that seemed easy earlier is a chore now. Your speech is slurred. Your limbs are stiff. Your gait is slow and imbalanced. You have prolonged medical treatment that throws your life out of gear. Your corporate life is a thing of the past, a mere memory.
What do you do now ? Do you sulk and give up or stand up and rebuild your life ?
This is what the protagonist of this story, my good friend Sudhir Shetty did when faced with this life-threatening situation. He did not lose hope. He learnt to walk again – with a purpose – albeit slowly. He smiled and people smiled back at him. He never missed complimenting the ladies, how beautiful and elegant they looked. He stopped by to smell the flowers. He joined our IIMB Orators Club, worked on his slurred speech, took the feedback, reworked, actively participated in all the activities, regaled us with his film songs and became an integral part of the Orators family. Despite his physical constraints he moves forward, one step at a time, every single day to reclaim and enjoy life. He is our self-appointed club ‘birthday wisher’, never missing a single occasion to be the first to spread joy and hope.
What if some events in life have set him back in certain aspects ? He has not turned his back on life. He keeps himself busy investing in stocks, religiously attending our club meetings, paying his taxes on time (reminded us all of the 31st July tax deadline) and being the ‘official’ chutney and tea maker at home ! He is grateful to the Almighty and his dear life partner for all that he is today.
A harbinger of hope, tenacity and positivity – Sudhir’s inspiring message : “I cannot go back to my past but I can go on to new aims in life”. He does not forget to
Now for the celebrated stories :
❖ From Wheelchair To World stage : Redefining the journey with a smile
I had the privilege of watching and listening to the celebrated Wheel-chair Warrior of India, TEDx Speaker, numerous awards winner, certified happiness-coach, the ever smiling Dr. Sai Kaustuv Dashgupta (Instagram) hosted by our IIMB Orators Club during July. Glimpse of his powerful, moving talk on Creating Happiness (what I gathered, not verbatim) :
- Turn life’s challenges into leadership skills
- Happiness is not a destination. It’s a decision.
- Disability is not always inspiring. Accept your fragility and be original.
- Accept your vulnerability. Your authentic self. You will be happy.
- When one door closed, I opened a new one.
- Real disability is about fear mindset. My list is a CAN DO list..not CANT DO.
- NO means New Opportunity
- When I stopped asking why me ? The Turning Point came….I am an asset. Not bechara
- Leadership begins with inclusion and belongingness. It is a journey to address unmet needs. Ask who is missing at the table. Inclusion is your attribute, your behaviour.
- Don’t chase happiness. Create it.
- Happiness comes from what I can give to others. Not ask what I can get.
- Secret formula for HAPPINESS : CHOICE + COURGAE+COMPASSION+CONTRIBUTION
❖ Magic of abilities : Resonating with the above is the Mitti Café story about Humaneness, crafted by a young social entrepreneur Ms. Alina Alam. Talking at the #IIMBue Leadership Conclave, 2026 she appealed :
– Disability is in our eyes. It is what we see. Change the perspective.
– People with intellectual disability like Autism work with the heart. Listen to them. Your paradigm to serve changes (as it did for Mitti Café).
– Disabled people are in lockdown for life. See purpose of life differently.
– Compassion and Courage are the magic of life in each one of us.
As Hubert H. Humphrey said “What matters is not what we have lost, but what we do with what remains.”
That was life experiences in a nutshell. Now for the July 2026 regulatory updates in a nutshell in our 326th issue of Samhita. A fairly light reading this month contrasted with a Thought Leadership article “Contracts: The Devil is in the Detail
How investor protections shape founder behaviour in Indian venture deals” put out by our affiliate firm Deep Cover Law that has the depth and gravitas to counter the same. Whether you are a startup founder, seasoned entrepreneur, investor, CEO, Director, CFO, CS or Lawyer – you will find the hero piece of this issue stimulating. Set aside some time to read, give your comments and share with others.
For access to previous issues of Samhita and readers’ feedback, please visit:
👉 http://www.sharadasc.com/resource-center/
Happy Reading
S.C. Sharada
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Contracts: The Devil is in the Detail
How investor protections shape founder behaviour in Indian venture deals
Contracts do not merely allocate risk. In founder-led companies, they can shape behaviour.
In a joint legal and investigative analysis, Deep Cover Law and Daryaft look at how investor-protective clauses in Indian venture deals influence founder incentives. The article examines three pressure points: founder equity forfeiture, governance visibility and exit rights. Each of these provisions serves a legitimate commercial purpose, but each can also affect how founders disclose information, respond to pressure and cooperate when the company faces stress.
The piece does not argue against investor protection. Instead, it argues for calibrated protection: drafting that remains enforceable while keeping candour, cooperation and early disclosure commercially rational.
Contract design is behaviour design.
Read the full insight: Contracts: The Devil is in the Detail
Regulatory Updates
MCA Update
The Ministry of Corporate Affairs (MCA), vide General Circular No. 03/2026 dated July 08, 2026, has extended the validity of the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) up to August 31, 2026. The Scheme was originally scheduled to remain in force until July 15, 2026.
The extension has been granted in view of the capacity enhancement and restoration activities being undertaken at the MCA Data Centre following the fire incident on June 5, 2026, which impacted the functioning of the MCA portal. The extended timeline provides companies with additional time to complete their pending statutory filings under the Scheme and supports ease of compliance during the restoration period.
RBI Update
The Ministry of Finance has released the draft Foreign Exchange Management (Foreign Investment) Rules, 2026, proposing to replace the existing Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 with a consolidated framework governing foreign investment in India. These are only draft rules and have not yet been notified.
The proposed framework seeks to simplify and streamline the foreign investment regime by introducing a unified concept of “foreign investment in equity”, broadening the scope of eligible investee entities to include companies, LLPs, investment vehicles, partnership firms and proprietary concerns, and consolidating key provisions relating to acquisition, transfer pricing, and compliance. The draft also incorporates the Government’s Foreign Direct Investment (FDI) Policy as an annexure, while empowering the Reserve Bank of India to prescribe operational and reporting requirements.
Another notable feature is the inclusion of a dedicated framework governing direct listing of Indian public companies on international stock exchanges, laying down eligibility criteria, pricing norms, foreign investment conditions, and investor safeguards.
Stakeholders should note that these proposals are currently in draft form and are subject to change before being notified by the Central Government.
SEBI Updates
SEBI notified the SEBI Foreign Portfolio Investors (Amendment) Regulations, 2026 to revise the FPI fee and registration framework. The regulations replace the existing US dollar-based fee structure with rupee-denominated fees, while allowing payment in equivalent eligible foreign currency. They also require fees to be paid before registration is granted and streamline the process for remitting fees collected by Designated Depository Participants (DDPs) to SEBI.
The amendments also simplify FPI registration. Applicants must now provide details such as their date of birth or incorporation, supporting PAN-related requirements and regulatory compliance. Most provisions will become effective 180 days after notification, allowing market participants time to transition to the new framework.
(Open, SEBI Foreign Portfolio Investors (Amendment) Regulations, 2026)
SEBI, through the SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2026, dated July 14, 2026, has amended the SEBI LODR Regulations by revising Regulation 40(7), Regulation 61(4), and Schedule VII with immediate effect. These amendments remove the procedural aspects relating to the transfer and transmission of securities from the LODR Regulations and empower SEBI to notify such procedures through circulars from time to time.
While at first glance the changes may appear procedural, the amendment fundamentally alters the way listed entities must approach compliance relating to the transfer and transmission of securities. Highlights of the Regulation may be referred below.
(Open Highlights of the SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2026)
(Open, SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2026)
SEBI has operationalised the requirement for freezing promoter and promoter group holdings, including those of their associates, at the ISIN level during the buy-back process. Pursuant to the amendment to the SEBI (Buy-back of Securities) Regulations, 2018, the freeze will be effective from the date of approval of the buy-back by the Board of Directors or shareholders, as applicable, until the closure of the buy-back offer.
To facilitate implementation, depositories have been directed to establish the necessary operational framework and system enhancements, with the revised mechanism becoming operational from August 1, 2026. The measure is intended to strengthen regulatory oversight and ensure greater transparency and integrity throughout the buy-back process.
IFSCA Update
The International Financial Services Centres Authority (IFSCA) has amended its Master Circular for Credit Rating Agencies in the IFSC to enhance transparency, record-keeping, and governance in the credit rating process. The amendments require Credit Rating Agencies (CRAs) to maintain comprehensive records of the analytical process and material considerations underlying rating decisions, while also broadening the scope of credit rating services to include financial strength and credit quality ratings.
The revised framework further mandates that rating actions be disseminated along with the corresponding rating rationale and provides issuers an opportunity to identify factual inaccuracies before publication, subject to specified exceptions. The amendments are aimed at strengthening the integrity, consistency, and reliability of credit ratings issued within the IFSC regulatory framework.
Others
MSME Ministry Launches Online Dispute Resolution (ODR) Portal
The Ministry of Micro, Small and Medium Enterprises has launched the MSME Online Dispute Resolution (ODR) Portal to provide a faster, transparent, and cost-effective mechanism for resolving commercial disputes, particularly those relating to delayed payments. The digital platform promotes resolution through negotiation, mediation, and mutual agreement, reducing reliance on prolonged litigation. By facilitating quicker settlements and preserving business relationships, the initiative aims to strengthen the MSME ecosystem and improve ease of doing business.
Social Security for Unorganised Workers through E-Shram Portal
The Ministry of Labour and Employment has announced that, as of July 14, 2026, more than 31.78 crore unorganised workers have been registered on the e-Shram Portal, strengthening India’s efforts to build a comprehensive social security ecosystem for unorganised, gig, and platform workers. The portal enables eligible workers to obtain a Universal Account Number (UAN) through self-registration and serves as a gateway to various government initiatives.
Further enhancing its utility, the portal is integrated with the National Career Service (NCS) for employment opportunities, Skill India Digital Hub (SIDH) for skill development, Pradhan Mantri Shram Yogi Maandhan (PM-SYM) for pension benefits, and other welfare platforms, improving access to social security and livelihood support for millions of workers.
ESG Update
India’s National Biodiversity Authority (NBA) has issued a Standard Operating Procedure (SOP) to help States and Union Territories identify, assess, and notify species threatened with extinction under Section 38 of the Biological Diversity Act, 2002. The SOP establishes a uniform, science-based framework covering scientific assessments, stakeholder consultations, validation, notification, conservation planning, monitoring, and periodic review. It encourages the use of scientific evidence, field assessments, and traditional knowledge, while involving local communities, Biodiversity Management Committees, research institutions, and subject experts in the process.
The framework also requires the preparation of species recovery and conservation action plans following notification and recommends regular monitoring to evaluate conservation outcomes and emerging threats. The initiative complements the Biological Diversity Regulations, 2025, and supports India’s National Biodiversity Strategy and Action Plan 2024–2030, particularly its objectives of preventing human-induced species extinction, promoting species recovery, and maintaining genetic diversity. It also aligns India’s biodiversity conservation efforts with the Kunming-Montreal Global Biodiversity Framework.
Tax Updates
The Central Board of Direct Taxes (CBDT) has issued an Office Memorandum containing 23 Frequently Asked Questions (FAQs) to facilitate the transition from the Income-tax Act, 1961 to the Income-tax Act, 2025.
The FAQs clarify the application of Section 536 (Repeals and Savings) to ongoing assessments, search proceedings, and registrations of charitable trusts, ensuring continuity and certainty in the implementation of the new tax regime.
The CBDT has issued an order providing for the upload of foreign financial information received under international information exchange frameworks such as FATCA and the Common Reporting Standard (CRS).
Key Points:
- Direct Visibility: Foreign financial information received under FATCA and CRS will now be reflected in taxpayers’ Annual Information Statement (AIS), Form 26AS and Form 168.
- Who is Affected: Indian residents holding foreign bank accounts, offshore investments, ESOPs or other overseas financial assets.
- Legacy Data Catch-up: Financial information for CY 2022 to CY 2024 will be uploaded by October 2026.
- Real-Time Updates: Data for CY 2025 onwards will be uploaded within 90 days of its receipt from foreign tax authorities.
The CBDT has notified a withholding tax exemption for specified payments made to eligible units operating in the International Financial Services Centre (IFSC).
Key Points:
- Zero TDS on Specified Payments: No tax is required to be deducted at source on specified payments, including interest, dividends, professional fees, commission, and brokerage, made to eligible IFSC units.
- Broad Coverage: The exemption applies across 14 eligible business categories, including banking units, fund managers, finance companies, broker-dealers, and fintech entities.
- Retrospective Applicability: The notification is effective from April 1, 2026, and applies for Tax Year 2026–27 onwards under the Income-tax Act, 2025.
- Form No. 1(N): Eligible IFSC units must furnish Form No. 1(N) to the payer to avail the withholding tax exemption.
- Reporting Requirement: Payers are required to disclose such non-deduction of tax in their quarterly TDS statements.
The CBDT has notified the Cost Inflation Index (CII) of 384 for Financial Year 2026–27. The notified index will be applicable for computing indexed cost of acquisition for eligible long-term capital assets transferred on or after April 1, 2026, in accordance with the provisions of the Income-tax Act.
GST Updates
GSTN has introduced a system-driven auto-update mechanism for Aggregate Annual Turnover (AATO).
Key Points:
- Correction Deadline: Taxpayers could manually amend the system-computed Aggregate Annual Turnover (AATO) for FY 2025–26 until July 31, 2026.
- Dynamic Auto-Update: The GST portal will now automatically recalculate AATO as subsequent GST returns are filed, ensuring updated turnover across all modules.
- Officer Verification: Manual amendments submitted by taxpayers will be reviewed by the jurisdictional tax officer between August 1 and August 15, 2026.
GSTN has announced that the implementation of the proposed e-Way Bill system enhancements, which were originally scheduled to take effect from August 1, 2026, has been kept on hold until further notice. Accordingly, taxpayers and other stakeholders are not required to implement any changes relating to the proposed enhancements until further communication is issued by GSTN.
Statutory Compliance Calendar
Quote of the day
"The only disability in life is a bad attitude." – Scott Hamilton
Disclaimer: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.