Corporate & Compliance Digest August 26, 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.          Rajasthan notifies Industrial Relations Rules, 2026

The Government of Rajasthan has notified the Rajasthan Industrial Relations Rules, 2026 under the Industrial Relations Code, 2020, replacing the Rajasthan Industrial Disputes Rules, 1958, the Rajasthan Industrial Employment (Standing Orders) Rules, 1963 and the Rajasthan Trade Union Regulation Rules, 1959. The Rules prescribe a comprehensive framework governing works committees, grievance redressal committees, trade union registration and recognition, negotiating unions and councils, standing orders, conciliation proceedings, industrial tribunals, strikes, lock-outs, lay-offs, retrenchment, closure of establishments, worker reskilling funds and compounding of offences. The Rules also provide detailed procedures for recognition of negotiating unions through membership verification and secret ballot, electronic filing of applications and notices, dispute resolution mechanisms, and mandatory employer contributions equivalent to 15 days’ wages of retrenched workers towards the Worker Re-Skilling Fund. The Rules came into force on 12 August 2026.

1.2.        Rajasthan notifies Code on Wages Rules, 2026

The Government of Rajasthan has notified the Code on Wages (Rajasthan) Rules, 2026 under the Code on Wages, 2019, establishing a comprehensive framework for minimum wages, payment of wages, wage claims, inspections and advisory mechanisms in the State. The Rules prescribe criteria for fixation of minimum wages, including a standard working-class family, nutrition, housing, education and medical costs, classify employees into unskilled, semi-skilled, skilled and highly skilled categories, and provide for revision of Variable Dearness Allowance ("VDA") twice annually. The Rules also streamline compliance through electronic maintenance of registers, wage slips and annual returns, prescribe procedures for wage claims and compounding of offences, and repeal several existing wage-related rules, consolidating the wage law framework in Rajasthan.

2.              Securities & Capital Markets 

2.1.          CDSL communicates SEBI Framework on calculation of net distributable cash flows for InvITs

Central Depository Services (India) Limited ("CDSL") has informed Depository Participants ("DPs") regarding the Securities and Exchange Board of India ("SEBI") circular introducing amendments to the framework for calculation of Net Distributable Cash Flows for Infrastructure Investment Trusts ("InvITs"). The revised framework permits InvITs to add back payments made towards major maintenance expenses for road projects that are funded through external borrowings while computing NDCF at both Special Purpose Vehicle (SPV)/HoldCo and trust levels. The framework is subject to specified conditions, including unitholder approval, statutory auditor certification and enhanced disclosures relating to borrowings, maintenance expenditure and distribution impacts. The changes are intended to provide greater flexibility in cash flow distribution while ensuring transparency and investor protection.

2.2.        CDSL introduces mandatory delay reason capture for Demat and Remat Requests

CDSL has informed DPs of enhancements to the Demat-Destat and Remat-Restat modules requiring mandatory capture of reasons for delays in processing requests. Under the revised functionality, where a dematerialisation or rematerialisation request is not processed within the prescribed seven-day timeline, DPs must record the applicable reason for delay in the designated system field. DPs have also been advised to implement necessary back-office changes to support the new requirement. The enhancement is aimed at improving operational transparency, monitoring and accountability in the processing of demat and remat requests.

2.3.          NSDL Introduces Dedicated Darpan ID Field in UDiFF for NPO Accounts

National Securities Depository Limited ("NSDL") has introduced a new Darpan ID field in the Unified Distinctive File Format (UDiFF) Catalogue Version 3.0.1.2 for Non-Profit Organisation (NPO) account holders. The new field will be applicable to NPO sub-types in the BO Upload and Client Master Export file formats and will become effective from 28 August 2026. NSDL has advised Participants to discontinue capturing Darpan ID in the existing dummy field and instead use the newly introduced dedicated field. Participants are required to make the necessary back-office system changes to ensure compliance with the revised reporting and data-capture requirements.  

2.4.          NSDL enhances Depository System for Regulatory and Statutory Freeze Orders

NSDL has introduced system enhancements to strengthen regulatory compliance in the processing of freeze and unfreeze instructions for demat accounts. Effective from 28 August 2026, Participants will be required to capture additional details relating to regulatory or statutory orders, including the issuing authority’s particulars, order type and order date, wherever applicable. The enhancement will also facilitate dissemination of such information through the Change Order of the Day (COD) mechanism, enabling Participants to update their back-office systems accordingly. Participants have been advised to implement the necessary operational and system changes to ensure compliance with the revised requirements.  

2.5.        BSE partners with MSCI to explore launch of Index Derivatives in India

BSE Limited ("BSE") has entered into an agreement with MSCI to explore the launch of futures and options contracts in India linked to selected MSCI indices, subject to regulatory approvals. The initiative is aimed at expanding investment and hedging opportunities for market participants and strengthening the development of India’s capital markets. MSCI indices are among the most widely tracked global benchmarks, with over USD 21 trillion in assets under management linked to them as of 31 December 2025. BSE noted that the growing adoption of index-based investment products, including Exchange Traded Funds (ETFs), has increased demand for derivative instruments to facilitate fund flows and manage market exposure.  

2.6.        BSE Clearing introduces Shorter-Tenor SLB Contracts

BSE has introduced three-working-day contracts in the Securities Lending and Borrowing (SLB) segment with effect from 17 August 2026. The new contracts, launched in line with the SEBI framework, feature a T+1 first leg and T+3 reverse leg and are initially available for eligible securities in the Futures and Options (F&O) segment. The initiative aims to provide greater flexibility for short-term securities borrowing and delivery requirements, facilitate inter-exchange arbitrage and improve price alignment across trading venues. BSECL has clarified that the contracts will operate through the existing automated order-matching mechanism and will not permit foreclosure, repay, recall or rollover facilities.

3.            Information Technology & Data Protection

3.1.        CERT-In issues High-Severity Advisory on Cisco BroadWorks Vulnerability

The Indian Computer Emergency Response Team ("CERT-In") has issued a high-severity vulnerability note (CIVN-2026-0417) concerning an Out-of-Band Blind XML External Entity (XXE) Injection vulnerability in Cisco BroadWorks. The vulnerability affects multiple Cisco BroadWorks components, including the Application Delivery Platform, Application Server, Profile Server and Xtended Services Platform versions earlier than RI.2026.07. CERT-In has warned that the flaw could enable an unauthorised remote attacker to access sensitive configuration files and information due to improper XML parser configuration. Organisations using affected Cisco BroadWorks products have been advised to promptly apply the vendor-recommended security updates and remediation measures to mitigate the risk of unauthorised information disclosure.   

3.2.          CERT-In issues Critical Advisory on Multiple Vulnerabilities in SAP Products

CERT-In has issued Advisory CIAD-2026-0040 highlighting multiple critical vulnerabilities affecting various SAP products, including SAP S/4HANA, SAP NetWeaver, SAP Commerce Cloud, SAP BusinessObjects Business Intelligence Platform, SAP Business AI Platform and SAPUI5. CERT-In has warned that the vulnerabilities could enable privilege escalation, authorisation bypass, spoofing, unauthorised access to sensitive information and compromise the confidentiality, integrity and availability of affected systems. Organisations using the impacted SAP products have been advised to review the advisory and implement the vendor-recommended security updates and mitigation measures on a priority basis to reduce cybersecurity risks.

3.3.          CERT-In issues Critical Advisory on Multiple Vulnerabilities in Apple Products

CERT-In has issued Advisory CIAD-2026-0041 highlighting multiple critical vulnerabilities affecting Apple iOS, iPadOS and macOS products. The vulnerabilities, arising from issues such as memory corruption, authentication and authorisation flaws, integer overflows and WebKit-related weaknesses, could enable arbitrary code execution, unauthorised access to sensitive information, privilege escalation and sophisticated targeted attacks. The advisory impacts Apple iOS and iPadOS versions prior to 26.6.1 and 18.7.10, as well as macOS Tahoe versions prior to 26.6.2. CERT-In has advised organisations and users to promptly apply the latest security updates released by Apple to mitigate these risks.

3.4.        CERT-In issues Advisory on End of Mainstream Support for Windows Server 2022

CERT-In has issued Advisory CIAD-2026-0042 informing organisations that Microsoft Windows Server 2022 will reach the end of mainstream support on 13 October 2026. Following this date, Windows Server 2022 will transition to extended support, under which security updates will continue to be provided until 14 October 2031, although no further mainstream support updates will be released. CERT-In has highlighted Microsoft’s recommendation for organisations to migrate to Windows Server 2025, the latest Long-Term Servicing Channel ("LTSC") release, to ensure continued access to mainstream support features and updates.

3.5.          CERT-In issues Critical Vulnerability Note on MLflow SSRF Flaw

CERT-In has issued Vulnerability Note CIVN-2026-0416 highlighting a critical Server-Side Request Forgery (SSRF) vulnerability in MLflow versions prior to 3.15.0. CERT-In has warned that the vulnerability could enable an unauthorised attacker to access internal services, exfiltrate sensitive information, conduct network reconnaissance and potentially compromise cloud or enterprise environments by exploiting inadequate validation of user-supplied URLs. Organisations using affected MLflow versions have been advised to urgently apply the vendor-recommended security updates and mitigation measures to address the risk.

4.              Corporate Law and MCA

4.1.         MCA notifies Companies (Indian Accounting Standards) Amendment Rules, 2026

The Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2026, introducing amendments to multiple Indian Accounting Standards (Ind AS), including Ind AS 101, 107, 109, 110 and 7. The amendments incorporate annual improvements for 2024, enhance disclosure requirements for contracts linked to nature-dependent electricity, revise guidance on classification and measurement of financial instruments, lease liabilities, hedge accounting and non-recourse features, and clarify reporting requirements for investments in associates, joint ventures and subsidiaries. The revised standards are applicable for annual reporting periods commencing on or after 1 April 2026 and are intended to align the Indian accounting framework with recent International Financial Reporting Standards (IFRS) developments while improving transparency and consistency in financial reporting.

5.               Regulatory Enforcement MCA

Authority	Name of the Entity	Amount	Contravention
ROC – Bengaluru	Fyle Technologies Private Limited	INR 10,000 (Indian Rupees Ten Thousand only)	Violation of Section 29 of the Companies Act, 2013 read with Rule 9B(4)(a) of the Companies (Prospectus and Allotment of Securities) Rules, 2014 for approving transfer of shares without prior dematerialisation of the transferor shareholders’ securities.
ROC- Guwahati	Grass Root Finance & Investment Company (India) Limited	INR 72,900 (Indian Rupees Seventy-Two Thousand Nine Hundred only)	Violation of Section 137(1) of the Companies Act, 2013 due to failure to file financial statements for FY 2021-22 within the prescribed timeline, attracting penalty under Section 137(3).
ROC- Hyderabad	Prajay Urban Private Limited	INR 72,500 (Indian Rupees Seventy-Two Thousand Five Hundred only)	Violation of Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014 read with Section 450 of the Companies Act, 2013 for filing Form DPT-3 for FY 2024-25 with incorrect particulars relating to Optionally Convertible Debentures amounting to INR 489.6 million (Indian Rupees Forty-Eight Crore Ninety-Six Lakh only), which were incorrectly reported as compulsorily convertible debentures.
ROC- Chennai	Suchindrum Kali Nidhi Limited	INR 50,000 (Indian Rupees Fifty Thousand only)	Violation of Section 158 of the Companies Act, 2013 for filing Form AOC-4 for FY 2017-18 without mentioning Director Identification Numbers ("DINs") in the financial statements, attracting penalty under Section 172 of the Companies Act, 2013.

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