Corporate & Compliance Digest April 20, 2026

We are delighted to share this week's AKP Corporate & Compliance Weekly Digest. Please feel free to write to us with your feedback at info@akandpartners.in.

1.  Labour & Employment Law

1.1. EPFO Issues Guidance on De linking Incorrect Member IDs from UANs

The Employees’ Provident Fund Organisation (“EPFO”) has released a detailed update explaining how employees can request the removal of wrongly linked Member IDs from their Universal Account Number (“UAN”). The guidance sets out an online, step by step process through the EPFO portal, including checks to ensure records are genuine and not linked to claims, transfers or long-standing service histories. Requests may require employer and, in some cases, EPFO field office approval before being finalised. The update highlights that only genuinely incorrect Member IDs should be de linked and that certain records, such as those with financial activity or older joining dates, may not qualify. It also makes clear that once a Member ID is successfully de linked, it cannot be re attached and any associated funds may be forfeited. The circular aims to help members correct errors.

1.2.  New Form 121 Introduced to Simplify Declarations for TDS-exempted incomes

The government has introduced Form No. 121, which replaces the earlier Forms 15G and 15H, for individuals and other eligible persons who want to receive certain incomes without Tax Deducted at Source (“TDS”). This EPFO implements that the new form brings these declarations into a single, consolidated format and aligns them with the Income Tax Act, 2025. Form 121 can be used for incomes such as interest, dividends, provident fund withdrawals and other specified payments, provided the declarant meets the stated conditions. The form includes clearer structure, fewer duplicate fields and improved guidance to make completion easier. The changes aim to standardise reporting and improve ease of use for taxpayers and organisations alike.

1.3. University Grant Commission posted guidelines for PMIS Pilot Extension 

The Ministry of Corporate Affairs (“MCA”) has issued detailed guidelines dated March 12, 2026, for the Prime Minister’s Internship Scheme (“PMIS”) pilot extension, aimed at offering structured internship opportunities to young people with exposure to real‑world work environments. The scheme is open to eligible Indian nationals aged 18–25 who are not in full‑time employment and meet specified education criteria, while clearly setting out who is excluded. Internships will typically run for six or nine months and will be delivered through a dedicated online portal, where candidates can apply and companies can post opportunities. The pilot has been extended until December 2026 with an expanded target for internships and voluntary participation by eligible companies. Interns will receive monthly financial assistance and a one‑time grant for incidental costs through direct benefit transfer. The guidelines also clarify roles for companies, government bodies and candidates, and emphasise that internships do not create an employer–employee relationship.

1.4. Labour Market Indicators Show Broad Stability in March 2026

The Ministry of Statistics and Programme Implementation has released the Monthly Bulletin of the Periodic Labour Force Survey for March 2026, reporting largely stable labour market trends. Overall labour force participation among people aged 15 and above stood at 55.4 per cent (fifty-five point four per cent), showing a slight dip from the previous month, while the worker population ratio remained steady at 52.6 per cent (fifty-two point six per cent). Female participation declined marginally during the month, though rural female unemployment stayed almost unchanged. Urban employment indicators remained broadly stable for both men and women. The overall unemployment rate rose slightly to 5.1 per cent (five point one per cent), driven mainly by a small increase in urban unemployment. These figures are based on a nationwide survey covering both rural and urban areas and reflect short‑term movements in employment conditions.

1.5. Government Partners with Porter and Gigin to Boost Jobs via NCS Portal

The Ministry of Labour & Employment has signed agreements with Porter and Gigin Technologies to strengthen job matching through the National Career Service (“NCS”) portal. The move aims to expand access to verified employment opportunities by linking job seekers with private platforms in logistics, driving and gig-based roles. Porter will use the NCS portal to post large-scale logistics and driving opportunities, while Gigin will support the listing of verified jobs and employer connections. The update highlights the NCS portal as a central digital platform bringing together jobseekers, employers and skill-aligned opportunities. The partnerships are intended to widen outreach, improve job matching and support more inclusive participation in the labour market.

1.6. Uttar Pradesh Announces Interim Minimum Wage Revision Following Labour Unrest 

The Uttar Pradesh Government has issued an order granting interim relief on minimum wages to workers after recent labour unrest in Noida and Greater Noida. Following discussions between worker and employer representatives, a high‑level committee reviewed concerns around rising living costs and business pressures. To address these issues and maintain industrial harmony, the State has introduced revised minimum wages with effect from April 1, 2026, classifying districts into three categories based on location and cost of living. Gautam Buddha Nagar and Ghaziabad fall in the highest category (Category-I), followed by districts with Nagar Nigam - excluding Gautam Buddha Nagar and Ghaziabad (Category II), and then other remaining districts (category III). Different wage rates have been set for unskilled, semi‑skilled and skilled workers for all three categories. The order applies as an interim measure until further revisions under the proposed state wage rules.

2.  Stamp Duty & Registration

2.1. Maharashtra Raises Stamp Duty Allowance Threshold, Streamlines Approval Hierarchy Under 2026 Amendment

The Maharashtra Stamp (Amendment) Act, 2026, notified on April 7, 2026, amends Section 52A of the Maharashtra Stamp Act to overhaul the process for granting stamp duty allowances. A key change raises the threshold beyond which the Collector cannot grant allowances from INR 5 Lakhs (Indian Rupees Five Lakhs) to INR 20 Lakhs (Indian Rupees Twenty Lakhs) and redirects forwarding of applications to the Joint Inspector General of Registration and Superintendent of Stamps. The amendment also introduces a tiered amount-based decision-making structure, assigning applications to progressively senior authorities depending on the value of the allowance claimed, with cases exceeding INR 2 Crores (Indian Rupees Two Crores only) being referred to the Chief Controlling Revenue Authority.

3.  Securities & Stock Exchanges

3.1. NSDL issues SEBI Guidelines for Custodians  

National Securities Depository Limited (“NSDL”) has circulated a notification drawing attention to the Securities and Exchange Board of India (“SEBI”) circular dated 4 March 2026 on Guidelines for Custodians. The circular is addressed to Participants registered with SEBI as Designated Depository Participants (“DDPs”) and Custodians of Securities. NSDL has advised all such entities to take note of the revised regulatory requirements and ensure compliance with the SEBI guidelines. The circular also reiterates ongoing reporting and compliance obligations, including periodic submissions relating to investor grievances, cyber security and risk‑based supervision, to be made through the e‑PASS system within the prescribed timelines. 

3.2. NSDL issues Internal and Concurrent Audit of Depository Operations

NSDL has issued a circular revising the framework for internal and concurrent audits of depository operations by Participants. In accordance with NSDL Bye‑law 10.3, Participants are required to conduct half‑yearly audits through a qualified Chartered Accountant, Company Secretary or Cost and Management Accountant holding a valid certificate of practice. The circular updates the audit report format and sets out revised guidelines and objectives for such audits, including coverage of all facets of depository operations and specified risk‑prone areas. Defined timelines for submission of audit reports have been reiterated, and NSDL has clarified that reports not aligned with the prescribed guidelines will be treated as non‑submission. The circular further emphasises auditor qualification, certification requirements, and the importance of audit quality and independence.

3.3.  NSDL issues updates on UNSC Sanctions List and Section 51A of the UAPA, 1967

NSDL has informed Participants of updates communicated by SEBI concerning amendments to the United Nations Security Council (“UNSC”) sanctions list relating to ISIL (Da’esh) and Al‑Qaida, pursuant to Section 51A of the Unlawful Activities (Prevention) Act, 1967 (“UAPA”). The updates follow notifications issued by the UNSC Committee under resolutions 1267 (1999), 1989 (2011) and 2253 (2015), which include additions to the sanctions list. Participants are required to continuously screen existing and prospective accounts to ensure that no account is held by, or linked to, sanctioned individuals or entities, in line with SEBI’s anti‑money laundering and counter‑terrorist financing framework. The circular also reiterates procedures for asset freezing, de‑listing requests and ongoing monitoring, and advises Participants to regularly review updates published on the SEBI website.

3.4. CDSL issues amendments to DP Operating Instructions – Pledge, Unpledge and Invocation Processes

Central Depository Services (India) Limited (“CDSL”) has issued amendments to DP Operating Instructions (“OI”) Chapter 8 relating to pledge, unpledge and invocation of securities. The changes introduce a combined and automated process for unpledge and invocation‑cum‑sale of securities under Client Unpaid Securities Pledgee Account (CUSPA) Pledge, Margin Pledge and Margin Trading Funding (“MTF”) Pledge. New procedures for pledge release and invocation for early pay‑in and redemption have been prescribed, with system‑generated transactions being reported automatically to the clearing corporations. Depository Participants (“DPs”) are advised to review the revised annexures and ensure timely compliance with the updated operational framework.

3.5. CDSL issues amendments to DP Operating Instructions – Account Opening and Nomination Framework

CDSL has notified amendments to DP OI Chapter 2 (Account Opening) pursuant to the SEBI circulars on revamp of nomination facilities in the Indian securities market. The amendments rationalise and standardise procedures for account opening, transmission, joint account operations and nomination, including enhanced clarity on documentation, mode of operation, and treatment of nominations for sole and joint holders. DPs are required to align their account opening and maintenance processes, systems and forms with the revised OI and annexures to ensure compliance with the updated SEBI framework.

3.6.  CDSL issues Master Circular for Depository Participants

CDSL has issued its Master Circular for Depository Participants, consolidating all applicable CDSL communiqués and guidelines in force as on 31 March 2026. The Master Circular, issued in line with SEBI directions, provides a subject‑wise compilation across key areas including account opening, nomination, transmission, settlement, pledge, internal controls, investor grievance redressal, cyber security, prevention of money laundering and reporting obligations. While the Master Circular does not replace the Depositories Act, 1996, SEBI regulations, CDSL bye‑laws or operating instructions, it serves as a comprehensive reference for DPs to track applicable regulatory and operational requirements. DPs are advised to read the Master Circular in conjunction with the underlying statutory and regulatory provisions and ensure continued compliance.

4.  Information Technology

4.1. CERT-In Flags Privilege Escalation Vulnerability in Microsoft Defender

The Indian Computer Emergency Response Team has issued a vulnerability note highlighting a privilege escalation vulnerability in Microsoft Defender Antimalware Platform version 4.18.26020.6 and below. The advisory provides that the vulnerability arises due to insufficient granularity of access control and may be exploited by an authenticated local attacker through specially crafted operations to gain elevated privileges on the targeted system, potentially resulting in unauthorised administrative access and full SYSTEM-level compromise. The note advises all affected users and organisations to apply security updates as provided by the vendor.

4.2. CERT-In Flags Multiple Vulnerabilities in Mozilla Firefox and Thunderbird

The Indian Computer Emergency Response Team has issued a vulnerability note highlighting multiple vulnerabilities in Mozilla Firefox and Thunderbird products, including Firefox versions prior to 149.0.2 and corresponding ESR versions, as well as Thunderbird versions prior to 149.0.2. The advisory provides that the vulnerabilities arise due to memory safety bugs, incorrect boundary conditions, and integer overflows in graphics components, which could be exploited by a remote attacker through specially crafted websites to execute arbitrary code, cause denial-of-service conditions, or gain unauthorised access to sensitive information. The note advises users and organisations to apply updates as recommended by the vendor to mitigate the identified risks.

4.3. CERT-In Flags Multiple Vulnerabilities in Adobe Products

The Indian Computer Emergency Response Team has issued an advisory highlighting multiple high-severity vulnerabilities in various Adobe products, including Acrobat, Reader, Photoshop, Illustrator, InDesign, ColdFusion, and others. The advisory states that these vulnerabilities arise due to issues such as improper input validation, buffer overflows, use-after-free errors, type confusion, and deserialization of untrusted data, which could be exploited by attackers to execute arbitrary code, bypass security restrictions, access sensitive information, or cause denial-of-service conditions. The note advises users and organisations to apply security updates released by Adobe to mitigate the identified risks. The advisory aims to address the high risk of system compromise, data exposure, and service disruption through timely patching and security updates.

4.4. CERT-In Flags Multiple Vulnerabilities in Microsoft Products

The Indian Computer Emergency Response Team has issued an advisory highlighting multiple high-severity vulnerabilities across Microsoft products, including Windows, Office, SQL Server, Azure, and other enterprise systems. The advisory states that these vulnerabilities could be exploited by attackers to execute arbitrary code remotely, gain elevated privileges, access sensitive information, bypass security restrictions, conduct spoofing attacks, tamper with data, or cause denial-of-service conditions. The note advises users and organisations to apply the latest security updates released by Microsoft to mitigate the identified risks.

5. Corporate Affairs

5.1. MCA launched stakeholder consultation on Overhaul of MCA Filing System

The MCA with technical support of the Indian Institute of Corporate Affairs, has issued a consultation paper/concept note seeking feedback on a proposed rationalisation of the MCA filing architecture under the Companies Act, 2013. The concept note outlines a shift towards a more data centric and technology enabled compliance framework, covering the full corporate lifecycle from incorporation to exit. Key changes suggested includes consolidation of overlapping forms, wider use of Straight Through Processing (auto approval) for routine filings and a new MCA21 Version 3 interface with prefilled data and “file once, use everywhere” functionality. The proposals also flag threshold-based and risk-based compliance, aiming to simplify requirements for small companies, MSMEs, OPCs, and dormant entities. Enhanced interoperability with other regulators (such as Income tax, GST, NCLT and depositories) are under consideration. Stakeholders are invited to submit comments by May 15^th, 2026.

6.  Taxation

6.1.  CBDT issues corrigendum to Income-tax Rules, 2026 to rectify drafting and reference inconsistencies

The Central Board of Direct Taxes (“CBDT”), under the Ministry of Finance, has issued a corrigendum to the Income-tax Rules, 2026, vide Notification dated April 16, 2026, to address drafting errors, incorrect references, and structural inconsistencies in earlier notified provisions. The corrigendum introduces a series of technical corrections, including substitution of incorrect section references with corresponding rule references, rectification of typographical errors, and standardisation of terminology across forms and schedules. Key amendments include replacing references such as “PAN/Aadhaar” with “PAN” in multiple reporting formats, restructuring numbering and headings across various parts and annexures, and revising disclosure requirements relating to international group entities and specified funds. The changes also streamline verification language, remove redundant fields such as Aadhaar in certain sections, and align form structures for improved clarity and consistency. Overall, the corrigendum is intended to ensure coherence in the regulatory framework, reduce interpretational ambiguity, and facilitate smoother compliance under the updated Income-tax Rules.

7.  Regulatory Enforcement and Compliance Action

Authority	Name of Company / Individual	Amount of Penalty Imposed	Contravention
Registrar of Companies (ROC), Bangalore	Techfino Capital Private Limited	INR 5,00,000/- (Indian Rupees Five Lakh only)	Violation of Section 42(3) of the Companies Act, 2013 read with Rule 14(8) of the Companies (Prospectus and Allotment of Securities) Rules, 2014. The company issued a Private Placement Offer cum Application Letter for NCDs, before filing the requisite special resolution (MGT-14) with the Registrar which was filed only on a later date.
Registrar of Companies (ROC), Coimbatore	Thambbi Modern Spinning Mills Limited	INR 2,12,000/- (Indian Rupees Two Lakh Twelve Thousand only)	Violation of Section 196(2) of the Companies Act, 2013, read with Section 450 of the Act. The company failed to file Form MR-1 (return of appointment of Managing Director) within the mandatory 60-day period on two separate occasions, the form was filed with a delay of 35 days, and for re-appointment, it was filed with a delay of 17 (seventeen) days, aggregating to a total delay of 52 (fifty two) days

Disclaimer

The note is prepared for knowledge dissemination and does not constitute legal, financial or commercial advice. AK & Partners or its associates are not responsible for any action taken based on its contents.

For further queries or details, you may contact:

Mr Anuroop Omkar

Founding Partner, AK & Partners

info@akandpartners.in