Corporate & Compliance Digest June 01, 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.           Ministry of Rural Development (MoRD) issues draft rules for digital payment of wages and unemployment allowance

The Ministry of Rural Development (“MoRD”) has issued draft rules under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, inviting public comments within thirty days from publication in the Official Gazette. The draft rules mandate that all wage payments and unemployment allowances be made exclusively through Direct Benefit Transfer (“DBT”) into beneficiaries’ bank or post office accounts, adopting a fully cashless framework. Payments are to be processed electronically through the scheme’s Management Information System and aligned with the existing fund flow mechanisms for centrally sponsored schemes. Additionally, the rules provide for authentication through Aadhaar Payment Bridge System (“APBS”) or similar mechanisms to ensure efficiency and transparency, while allowing the Central Government to grant limited exemptions in exceptional circumstances.

1.2.           Government of Himachal Pradesh notifies draft Occupational Safety Rules under OSH Code

The Government of Himachal Pradesh has published draft Occupational Safety, Health and Working Conditions (Himachal Pradesh) Rules, 2026 under the Occupational Safety, Health and Working Conditions Code, 2020, seeking objections and suggestions within forty-five days. The proposed rules introduce a comprehensive compliance framework covering electronic registration of establishments, licensing, maintenance of statutory registers, and detailed reporting obligations for accidents, diseases, and operations. Key provisions include mandatory appointment of safety officers and constitution of safety committees in specified establishments, periodic health examinations, stricter accident reporting timelines, and digital filing of returns. The rules also prescribe wage and overtime conditions (including payment at twice the ordinary rate), regulate employment conditions for women and contract labour, and mandate robust health infrastructure such as occupational health centres and emergency response systems for hazardous industries. Extensive provisions on hazardous processes, disclosure obligations, worker safety information, and environmental safeguards aim to strengthen workplace safety, transparency, and accountability across establishments.

1.3.           Employees’ State Insurance Corporation (ESIC) amends rate contracts to change overseas manufacturing sites

The Employees’ State Insurance Corporation (“ESIC”) has issued Amendment No. 10 of 2026 modifying existing rate contracts to reflect changes in overseas manufacturers and manufacturing sites for specified pharmaceutical products supplied by firms including Sandoz, Novartis Healthcare Private Limited, and Johnson and Johnson Private Limited. The amendments apply to multiple rate contracts currently in force and are based on requests from the concerned firms. ESIC has clarified that the drugs supplied from the revised manufacturing locations must continue to comply with the approved composition, strength, quality standards, and packaging requirements specified under the respective rate contracts, as well as the standards under the Drugs and Cosmetics Act. The amendments do not alter the contractual terms and conditions, and all firms remain bound by the existing rate contract obligations.

2.               Securities & Capital Markets

2.1.           NSDL issues compliance update on UNSC sanctions list under UAPA framework

National Securities Depository Limited (“NSDL”) has issued a circular pursuant to communication from the Securities and Exchange Board of India (“SEBI”) regarding updates to the United Nations Security Council (“UNSC”) sanctions list under Section 51A of the Unlawful Activities (Prevention) Act, 1967 (“UAPA”). The update includes the removal of seven entries from the UNSC 1988 sanctions list. Market intermediaries are required to ensure compliance with anti-money laundering (“AML”) and combating the financing of terrorism (“CFT”) obligations, including verifying that no accounts are opened or maintained in the names of persons or entities listed in the sanctions database. Participants must also continuously screen existing accounts, follow prescribed procedures for reporting and delisting requests, and ensure adherence to SEBI’s master circular on AML and CFT standards.

2.2.           NSE launches Groww Nifty Smallcap 250 Momentum Quality 100 ETF NFO on MF Invest platform

National Stock Exchange of India Limited (“NSE”) has announced the launch of the Groww Nifty Smallcap 250 Momentum Quality 100 Exchange Traded Fund (“ETF”) New Fund Offer (“NFO”) on its MF Invest platform. The NFO will be available for subscription from May 29, 2026, to June 12, 2026, with the allotment scheduled for June 19, 2026. The scheme will be offered in both direct and regular growth options under the equity category. Members have been advised to ensure the timely receipt of funds in the designated clearing corporation account by June 15, 2026.

2.3.           BSE introduces additional surveillance measures for securities with unusual price movement

BSE Limited (“BSE”) has introduced additional surveillance measures (“ASM”) for securities exhibiting unusual price movements, pursuant to its earlier circular dated November 07, 2025. Following a periodic review, certain securities have been identified for inclusion under the ASM framework with effect from June 01, 2026, while others have been excluded. A consolidated list of such securities has been provided in the annexures to the notice. The measure aims to enhance market integrity and investor protection by monitoring abnormal price behaviour and applying stricter trading conditions where required.

2.4.           BSE implements short-term additional surveillance measures for select securities

BSE has notified the applicability of the Short-Term Additional Surveillance Measure (“ST-ASM”) framework for certain securities that have met the prescribed criteria. Under Stage I, margins of 50 per cent (fifty per cent) or higher (subject to a cap of 100 per cent (one hundred per cent)) will be imposed, while Stage II requires margins of up to 100 per cent (one hundred per cent) on open and new positions with effect from June 02, 2026. These measures are part of BSE’s enhanced market surveillance framework to curb excessive volatility and protect investors and will operate alongside existing surveillance mechanisms. The inclusion of securities is purely surveillance-driven and does not constitute any adverse action against the concerned entities.

2.5.           BSE applies long-term additional surveillance measures with enhanced margin and trading restrictions

BSE has introduced updates to the Long-Term Additional Surveillance Measure (“LT-ASM”) framework, applying stricter controls on identified securities. These include imposition of 100 per cent (one hundred per cent) margins on trading positions, lower price bands, and, in certain cases, transfer of securities to specific trading groups such as T/XT/MT/TS. The revised measures will take effect on June 01, 2026, and on June 03, 2026, depending on the action. The exchange will periodically review securities under this framework and has clarified that such classification is solely for surveillance purposes and should not be interpreted as an adverse reflection on the companies concerned.

2.6.           BSE imposes additional surveillance framework for companies under insolvency process

BSE has implemented an additional surveillance framework for securities of companies undergoing the Insolvency Resolution Process (“IRP”) under the Insolvency and Bankruptcy Code (“IBC”). Securities that meet the criteria have been placed under this framework, effective June 01, 2026, with periodic reviews to assess their status. Certain securities have also been removed from the framework, and a consolidated list has been provided. The exchange has emphasised that the classification is purely for monitoring market activity and should not be construed as an adverse action, while also clarifying that price bands for securities exiting the framework will be restored subject to other applicable surveillance measures.

3.               Information Technology & Data Protection

3.1.           CERT-In Flags Multiple Vulnerabilities in Microsoft Products

The Indian Computer Emergency Response Team (CERT-In) has issued Vulnerability Note CIVN-2026-0273, highlighting multiple vulnerabilities in various Microsoft products, including Microsoft Global Secure Access (GSA), Microsoft Entra ID, Azure Stack HCI, Microsoft 365 Copilot, Azure Resource Manager, Azure Virtual Network Gateway, Azure Privileged Identity Management (PIM), Microsoft Power Pages, and Azure Orbital Spatio. CERT-In stated that the vulnerabilities arise due to improper input validation, authentication weaknesses, authorisation issues, and command handling flaws, which could allow attackers to execute arbitrary code, elevate privileges, disclose sensitive information, or cause denial of service on affected systems. The advisory identified risks relating to remote code execution, command injection, disruption of cloud services, data exposure, unauthorised privilege escalation, and system compromise. CERT-In has advised organisations and individuals using the affected Microsoft products to apply the security updates and mitigations issued by Microsoft to reduce exposure to these vulnerabilities.

3.2.           CERT-In Flags Multiple Vulnerabilities in Atlassian Products

CERT-In has issued Advisory CIAD-2026-0027, warning of multiple high-severity vulnerabilities affecting several Atlassian products, including Bamboo, Bitbucket, Confluence, Fisheye/Crucible, Jira, and Jira Service Management Data Centre and Server versions. CERT-In stated that the vulnerabilities could allow attackers to execute arbitrary code remotely, disclose sensitive information, conduct directory traversal attacks, inject malicious code, perform HTTP request/response smuggling, exploit cross-site scripting (XSS) flaws, bypass authentication and session protections, include unauthorised files, or cause denial of service conditions. The advisory highlighted risks relating to unauthorised access to sensitive data, system instability, and compromise of affected enterprise environments, and advised organisations using the impacted Atlassian products to apply the latest vendor-recommended security updates and mitigations at the earliest.

3.3.           CERT-In Flags Multiple Vulnerabilities in 7-Zip

CERT-In has issued Vulnerability Note CIVN-2026-0274 regarding multiple vulnerabilities identified in 7-Zip versions prior to 26.01. CERT-In stated that the vulnerabilities arise due to improper handling of memory operations, insufficient bounds validation, use of uninitialized memory, integer overflow conditions, and inadequate path validation across multiple archive handlers and extraction routines. The advisory noted that successful exploitation could enable attackers to disclose sensitive information, perform arbitrary file write operations, execute arbitrary code, or cause denial of service conditions and application crashes on affected systems. CERT-In further highlighted risks relating to unauthorized access to sensitive information, arbitrary file modification, full system compromise, and service disruption, and advised organizations and individuals using affected versions of 7-Zip to update to version 26.01 or later to mitigate the identified vulnerabilities.

4.               Corporate Law & MCA

4.1.           MCA expands CSR Activities to Include Social Stock Exchange Instruments

The Ministry of Corporate Affairs has amended Schedule VII of the Companies Act, 2013, to include “subscription to zero-coupon zero principal instruments on the Social Stock Exchange” as an eligible Corporate Social Responsibility (“CSR”) activity. A new item(xiii) has been inserted in Schedule VII, thereby enabling companies to utilise their CSR funds for investments in such instruments listed on the Social Stock Exchange. The amendment broadens the avenues available for CSR spending and is expected to facilitate greater funding for social enterprises and not-for-profit organisations through market-based mechanisms.

4.2.         MCA prescribes a framework for CSR Investments through Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026

The Ministry of Corporate Affairs has notified the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026, introducing a framework for undertaking Corporate Social Responsibility activities through subscription to zero-coupon zero-principal instruments issued by a not-for-profit organisation registered with the Social Stock Exchange. The amendment permits companies to allocate up to 10 per cent (ten per cent) of their annual CSR expenditure towards such instruments and exempts these investments from impact assessment requirements. The rules also impose utilisation and reporting obligations on issuing organisations, including completion of funded projects within three financial years and transfer of any unspent amounts to funds specified under Schedule VII of the Companies Act, 2013.

5.               Regulatory Enforcement

Authority	Name of the Company/ Individual	Amount of Penalty Imposed	Contravention
Registrar of Companies (“ROC”), Chandigarh under Ministry of Corporate Affairs (“MCA”)	Pure Drinks Limited and its officers	Company: INR 300,000 (Indian Rupees Three Lakh only); Each officer: INR 100,000 (Indian Rupees One Lakh only)	Delay in filing particulars of change in director leading to violation of Section 172 of the Companies Act, 2013, read with Section 170(2)
ROC Mumbai MCA	Madhav Babulal Todi	INR 10,000 (Indian Rupees Ten Thousand only)	Incorrect filing of E-form AOC-4 (wrong disclosure regarding subsidiary), resulting in contravention of Rule 8(3) of the Companies (Registration Offices and Fees) Rules, 2014, punishable under Section 450 of the Companies Act, 2013
ROC Mumbai MCA	Karmic Stock Broking Private Limited and its officers	INR 7,500 (Indian Rupees Seven Thousand Five Hundred only) each (company and each officer)	Failure to maintain a registered office capable of receiving communications, in violation of Section 12(1), penalised under Section 12(8) of the Companies Act, 2013
ROC Mumbai MCA	Ketan Chandrakant Paurana	INR 48,934 (Indian Rupees Forty-Eight Thousand Nine Hundred Thirty-Four only)	Possession of two Director Identification Numbers (“DINs”) in violation of Section 155 of the Companies Act, 2013, penalised under Section 159
ROC Mumbai under MCA	Om Shyamji Foods Private Limited – Directors	INR 50,000 (Indian Rupees Fifty Thousand only) each	Failure to provide explanatory statement for special business in AGM notice, in contravention of Section 102 of the Companies Act, 2013
ROC Mumbai MCA	Mikado Merchants Private Limited and its directors	Company: INR 25,000 (Indian Rupees Twenty-Five Thousand only); Each director: INR 5,000 (Indian Rupees Five Thousand only)	Non-compliance with Secretarial Standards relating to proper maintenance and numbering of minutes of meetings, in violation of Section 118 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