Corporate & Compliance Digest August 10, 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 Law & Employment Law

1.1.          PFRDA expands NPS investment choice options for CAB subscribers

The Pension Fund Regulatory and Development Authority ("PFRDA") has expanded the investment choice options available under the National Pension System (“NPS”) for subscribers of Central Autonomous Bodies (CABs), pursuant to the Office Memorandum dated 1 July 2026 issued by the Department of Expenditure, Ministry of Finance. The total number of investment choices has increased from four to six with the introduction of two additional Auto Choice options, namely Auto Choice - Life Cycle 75 High (15E/55Y) and Auto Choice - Life Cycle Aggressive (35E/55Y). CAB subscribers can now choose from the Default Scheme, Active Choice (100 percent (one hundred percent) Government Securities), Auto Choice - Life Cycle 25 Low (5E/55Y), Auto Choice - Life Cycle 50 Moderate (10E/55Y), and the two newly introduced options. Subscribers opting for any non-default investment choice must also select a Pension Fund registered with PFRDA. The regulator has advised subscribers to review scheme and fund performance before making investment decisions.

1.2.        PFRDA launches NPS PRIDE-DISHA digital decision support tool for subscribers

PFRDA has launched NPS PRIDE-DISHA (Pension Fund Returns for Informed Decision & Empowerment), a digital tool designed to help NPS subscribers make informed investment decisions by comparing Pension Fund (PF) performance and investment choices. The tool uses nearly 5,000 days of historical Net Asset Value (NAV) data since 2008 and applies the Extended Internal Rate of Return (XIRR) methodology to reflect the actual investment experience of subscribers making periodic contributions. NPS PRIDE-DISHA enables comparison across approximately 4,800 investment combinations, including Active Choice, Auto Choice and Composite Schemes, based on parameters such as age, contribution amount and investment period. PFRDA has also introduced an open Application Programming Interface (API) framework to facilitate research, analytics and innovation using verified NPS data. The regulator noted that the tool provides historical performance analysis only and does not offer future return projections.

1.3.          ESIC introduces New ERP-Based Insured Person Registration Functionality

The Employees’ State Insurance Corporation ("ESIC") has introduced a new Insured Person (“IP”) Registration functionality in its Enterprise Resource Planning (ERP) system to streamline employee registration under the Employees’ State Insurance Scheme ("ESIS"). The new module enables employers to seamlessly register IPs, capture requisite details and generate Insurance Numbers, while employees can complete authentication through the ESIC Health Connect App. ESIC has directed Regional and Sub-Regional Offices to disseminate the user manual, conduct training programmes for field functionaries and assist employers and IPs in adopting the new registration process to ensure smooth implementation.

2.              Securities & Capital Markets 

2.1.          CDSL introduces enhancements to CDAS Freeze and Unfreeze Module

Central Depository Services (India) Limited ("CDSL") has enhanced its CDSL Depository Access System (CDAS) Freeze and Unfreeze Module to improve the traceability, verification and management of regulatory freeze and unfreeze actions in demat accounts. The changes require the capture of additional regulatory information, including authority details, order dates and order types, and introduce a new freeze reason code for "Other Regulatory Authority" with mandatory authority name disclosure. The updated unfreeze process will display freeze-related information in a read-only format and require details of the relevant unfreeze order. CDSL stated that the enhancements will strengthen operational efficiency, facilitate faster resolution of Beneficial Owner (BO) queries and ensure better tracking of regulatory instructions. Depository Participants (“DPs”) have been advised to update their systems in line with the revised Unified Distinctive Fields Framework (UDiFF) Catalogue Version 3.0.1.2.

2.2.        CDSL issues Directions on Non-Charging of AMC for Certain Demat Accounts

CDSL has reiterated that DPs should not levy Annual Maintenance Charges (AMC) on demat accounts marked as “To be Closed” that hold only illiquid, suspended-for-trading or delisted securities. CDSL has shared DP-wise lists of eligible Beneficial Owners (BOs) for review and compliance, based on information received from stock exchanges. DPs have been advised to ensure that AMC is not charged to such accounts in accordance with CDSL’s earlier communiqué dated 30 September 2025 and to take the necessary steps to comply with the requirement.

2.3.          NSDL extends timeline for submission of VAPT Audit Action Taken Reports

National Securities Depository Limited ("NSDL") has extended the timelines for submission of Vulnerability Assessment and Penetration Testing ("VAPT") half-yearly and annual audit Action Taken Reports ("ATRs") by participants through the e-PASS application. The revised deadlines are 31 October 2026 for the half-yearly VAPT audit ATR and 30 November 2026 for the annual VAPT audit ATR. NSDL clarified that the revised timelines will apply in accordance with the Cyber Security and Cyber Resilience Framework (CSCRF) and has directed participants to ensure strict compliance with the updated reporting requirements.

2.4.          BSE launches REITs Index for Listed Real Estate Investment Trusts

BSE Index Services Private Limited (“BSE Index Services”), a wholly owned subsidiary of BSE Limited (“BSE”), has launched the BSE REITs Index to track the performance of listed Real Estate Investment Trusts ("REITs") in India. The index has a base value of 1,000 and a first value date of 19 September 2022,  and will be reconstituted semi-annually in March and September. The launch is aimed at providing investors with a dedicated benchmark for assessing the performance of India's listed REIT market and further strengthening market analytics and investment tracking capabilities.

2.5.          BSE launches BSE 500 Momentum Value 50 and Momentum Quality 50 Indices

BSE Index Services, a wholly owned subsidiary of BSE, has launched the BSE 500 Momentum Value 50 Index and the BSE 500 Momentum Quality 50 Index to expand factor-based investment benchmarks in India. The indices track the performance of the top 50 companies within the BSE 500 universe based on combined momentum and value scores, and momentum and quality scores, respectively. Both indices have a base value of 1,000, a first value date of 20 June 2005, are reconstituted quarterly, and are subject to a 4 Per cent (Four Per cent) stock weight cap to promote diversification. BSE stated that the indices can serve as benchmarks for Exchange Traded Funds (“ETFs”), index funds, portfolio management services and mutual fund schemes, while offering investors and asset managers additional factor-driven investment solutions.   

2.6.        NSE invites public comments on Proposed Framework for Authorised Persons

National Stock Exchange of India Limited ("NSE"), in consultation with the SEBI and other exchanges, has issued a consultation paper seeking public comments on a proposed regulatory framework for Authorised Persons ("APs"). The proposals aim to strengthen investor protection and oversight through enhanced eligibility criteria, mandatory National Institute of Securities Markets (NISM) certifications, minimum net worth requirements of INR 5,00,000 (Indian Rupees Five Lakh only) for individual APs and INR 25,00,000 (Indian Rupees Twenty-Five Lakh only) for non-individual APs, stricter disclosure obligations, technology-driven monitoring of AP terminals, and enhanced supervisory responsibilities for stock brokers. Comments on the proposed framework may be submitted until 27 August 2026 through NSE’s website. 

2.7.          NSE launches Nifty India Defence Equal Weight Index

NSE, through its subsidiary NSE Indices Limited (NSE Indices), has launched the Nifty India Defence Equal Weight Index, a thematic index designed to track the performance of stocks comprising the Nifty India Defence Index. The index includes companies from the Nifty Total Market Index that either belong to eligible defence-related industries or derive at least 10 Per cent (Ten Per cent) of their revenue from the defence sector, with all constituents assigned equal weight. The index has a base date of 2 April 2018 and a base value of 1,000, is reconstituted semi-annually and rebalanced quarterly. NSE stated that the index is expected to serve as a benchmark for asset managers and as a reference index for ETFs, index funds and other passive investment products. 

3.            Information Technology & Data Protection

3.1.        CERT-In issues critical advisory on emerging cyber threats targeting Microsoft 365 Environments

The Indian Computer Emergency Response Team ("CERT-In") has issued a critical advisory warning organisations about a rise in sophisticated cyber-attacks targeting Microsoft 365 (M365) environments. The attacks involve password spraying, device-code phishing, abuse of Resource Owner Password Credentials (ROPC) OAuth flows, session token theft and Business Email Compromise (BEC) techniques to bypass Multi-Factor Authentication (MFA) and gain persistent access to services such as Exchange Online, Microsoft Teams, OneDrive and SharePoint. CERT-In has advised organisations to strengthen access controls, disable legacy authentication methods, enforce MFA, implement robust monitoring and audit mechanisms, and review Conditional Access policies to mitigate the risks of unauthorised access, data theft, financial fraud and extortion.

3.2.     CERT-In issues high-severity alert on Check Point Authentication Bypass Vulnerability

CERT-In has issued a high-severity vulnerability advisory concerning Check Point Security Management Server and Multi-Domain Security Management Server (MDS) versions, including R81.20, R82 and R82.10. The vulnerability (CVE-2026-18574) could allow a remote unauthenticated attacker to bypass authentication controls, execute arbitrary commands and gain unauthorised administrative access, potentially leading to complete compromise of affected servers. CERT-In has advised organisations using the impacted products to apply the security updates released by Check Point on an urgent basis to mitigate the risk.

3.3.     CERT-In issues high-severity advisory on Multiple Vulnerabilities in TP-Link Omada ZTP

Cert-In has issued a high-severity advisory regarding multiple vulnerabilities affecting TP-Link Omada Zero Touch Provisioning (ZTP) components, including Omada Controllers, Gateways, Switches, Access Points, Optical Line Terminal (OLT) platforms, Cloud services and mobile applications. The vulnerabilities could enable remote code execution, device hijacking, spoofing, unauthorised access, disclosure of sensitive information and system compromise due to weaknesses in input validation, access controls, certificate validation and device-to-controller communications. CERT-In has advised organisations and users to promptly apply the security updates released by the vendor to mitigate the identified risks.

3.4.          CERT-In issues critical alert on Multiple Vulnerabilities in Cisco IOS XE Software

CERT-In has issued a critical vulnerability advisory concerning multiple security flaws affecting Cisco IOS XE Software and certain Cisco IOS Software deployments. The vulnerabilities could enable attackers to execute arbitrary code, cause denial-of-service (DoS) attacks, bypass security controls, gain unauthorised access and compromise the confidentiality, integrity and availability of affected network devices. CERT-In has warned that the vulnerabilities impact critical network infrastructure, including enterprise routers, switches and wireless controllers, and has advised organisations to promptly apply the security updates and mitigation measures released by Cisco.

4.             Corporate Law & MCA

4.1.          MCA extends timeline for submission of iPIE Stakeholder Suggestions

The Ministry of Corporate Affairs (“MCA") has extended the deadline for submission of stakeholder comments on the Integrated Platform for Insolvency Ecosystem ("iPIE") from 3 August 2026 to 10 August 2026. The proposed iPIE platform aims to create a unified digital ecosystem under the Insolvency and Bankruptcy Code, 2016 (IBC) by integrating key stakeholders, processes and technology systems, including the Insolvency and Bankruptcy Board of India (IBBI), National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT), Insolvency Professionals (IPs) and Information Utilities. MCA has invited stakeholders to provide feedback on the platform’s proposed features, which include digital case management, claims processing, compliance monitoring, litigation management, electronic voting and data analytics capabilities.

4.2.          MCA extends deadline for submission of Insolvency Ecosystem EoI

MCA has extended the deadline for submission of Expressions of Interest (EoIs) under EoI No. Insol-30/8/2025-Insolvency-MCA-Part(2) dated 17 July 2026. The last date for submission has been extended by one week, from 7 August 2026 (1700 hours) to 14 August 2026 (1700 hours), providing interested participants with additional time to submit their proposals.

5.           Regulatory Enforcement MCA

Authority	Name of the Entity	Amount	Contravention
SEBI	Modulus Alternatives Investment Managers Limited	INR 10,87,500 (Indian Rupees Ten Lakhs Eighty-Seven Thousand Five Hundred only)	Violation of Regulation 10(d) of the SEBI (Alternative Investment Funds) Regulations, 2012, read with Clause 11.1.2 of the Master Circular for Alternative Investment Funds dated 7 May 2024, relating to failure to maintain the Investment Manager’s continuing interest in the Alternative Investment Fund ("AIF") on a pro-rata basis with drawdowns made from other investors.
SEBI	In the matter of India Power Corporation Limited ("IPCL")	INR 24,70,000 (Indian Rupees Twenty-Four Lakh Seventy Thousand only)	violation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations"), including misstatement and misrepresentation of financial statements for FY 2022-23 and FY 2023-24 by failing to recognise Expected Credit Losses ("ECLs") on receivables from Power Trust amounting to INR 199.70 crore and on unsecured loans, including accrued interest, amounting to INR 37.53 crore.

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