Corporate & Compliance Digest May 04, 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.           Maharashtra releases draft Industrial Relations Rules for public consultation

The Maharashtra Government (“MG”) has published draft Industrial Relations Rules, 2026, on April 28, 2026, proposing a comprehensive overhaul of labour procedures under the Industrial Relations Code, 2020. The draft rules outline new frameworks for settlements, dispute resolution, trade union registration, works committees, grievance redressal systems, standing orders, industrial action procedures and retrenchment/closure requirements. They also mandate digital filing, streamline timelines, strengthen worker representation and modernise record‑keeping across industrial establishments. The rules intend to replace older regulations dating back to 1957, 1959 and 1927, and are open for public comments within 45 (Forty-Five) days of publication.

1.2.           Maharashtra Publishes Draft Rules for the Code on Wages, 2026

The MG has released draft rules under the Code on Wages, 2019 (“CoW 2019”), on April 28, 2026, proposing a new framework to regulate minimum wages, wage payments, working hours, deductions and record‑keeping across the State. The draft outlines how minimum wages should be calculated, criteria for skill‑based categorisation of jobs, and standards for rest days, overtime and night‑shift work. It also prescribes detailed procedures for employers on wage deductions, appeals, handling unpaid dues, and issuing wage slips. Establishments shall maintain updated registers, follow revised norms for bonus payments and comply with new processes for dealing with contractors. Public feedback has been invited within 45 (Forty-Five) days of the notification’s publication, after which the MG shall finalise the rules.

1.3.           Himachal Pradesh issues draft rules for the Code on Wages, 2026

The Himachal Pradesh Government has published on April 29, 2026, draft rules  for the CoW 2019, replacing earlier laws on minimum wages, payment of wages and associated procedures. The draft outlines how wages should be calculated, including criteria for food, housing and essential living costs, and confirms an 8 (eight) hour working day with limits on daily spread over and weekly rest requirements. It sets out new processes for wage deductions, overtime payments, handling of unpaid dues and issuing wage slips. Employers shall maintain specific registers and comply with rules for dealing with fines, advances and contractor-engaged workers. The notification also establishes the structure and functioning of the State Advisory Board. Public comments may be submitted within 30 (thirty) days of the draft’s publication.

1.4.           Goa releases issues draft rules for the Code on Wages, 2026

The Government of Goa has published on April 22, 2026, draft rules for the CoW 2019, replacing earlier wage and minimum‑wage related rules of 1964, 1974 and 1975. The draft sets out how minimum wages should be calculated, including living‑cost components such as food, housing and essential expenses, and provides guidance on wage fixation across different skill levels and geographic zones. It also explains rules on working hours, weekly rest, night shifts and conditions under which longer hours may be allowed. Provisions on payment of wages include limits on deductions, procedures for fines, recovery of advances and handling unpaid dues. Employers shall maintain specific registers, issue wage slips and follow set procedures for claims, appeals and offence compounding. Public objections or suggestions may be submitted within 45 (Forty-Five) days of the draft’s publication.

1.5.           Maharashtra clarifies rules on registration of establishments Under the OSH Code

The MG has issued a clarification on whether establishments shall register under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (“2017 Act”), following the introduction of the Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”). The circular explains that establishments employing ten or more workers will only need to register under the OSH Code once its rules are finalised, as this single registration will meet statutory requirements relating to safety, health and working conditions. It further states that separate registration under the 2017 Act is not required because the central legislation covers the same subject comprehensively. However, businesses with fewer than ten workers shall still submit an intimation of commencement under the 2017 Act. Officers across the State have been directed to ensure uniform implementation of this guidance.

2.               Securities & Capital Markets

2.1.           NSE issues circular on Surveillance and Investigation – Consolidated Framework

National Stock Exchange of India Limited (“NSE”) has issued a consolidated Surveillance and Investigation circular dated April 30, 2026, combining all circulars previously issued by its Surveillance and Investigation Departments into a single reference document. The consolidation aims to provide trading members and market participants with a comprehensive and uniform source for surveillance policies, investigation procedures, penalty frameworks and operational requirements, covering equity, derivatives and Small and Medium Enterprise (“SME”) segments.

2.2.           NSE consolidates Surveillance Frameworks, including GSM, ESM and ASM

The consolidated circular brings together the frameworks relating to Graded Surveillance Measures (“GSM”), Enhanced Surveillance Measures (“ESM”) and Additional Surveillance Measures (“ASM”), including both short‑term and long‑term ASM. These frameworks are designed to address abnormal price movements, excessive volatility and concentrated trading activity through graduated actions such as higher margins, trade‑for‑trade settlement, price band restrictions, Additional Surveillance Deposits and restrictions on trading frequency. The measures are reviewed periodically and, where applicable, have been extended to Public Sector Undertakings and SME‑listed entities.

2.3.           NSE reiterates Trade‑for‑Trade and Illiquid Securities Mechanisms

NSE has reiterated the criteria and review process for placing securities under the Trade‑for‑Trade segment and the Periodic Call Auction Session for illiquid securities. Securities with persistently low liquidity, abnormal price‑volume behaviour or weak fundamentals may be moved to restricted trading regimes, subject to clearly defined entry and exit thresholds based on turnover, market capitalisation, price variation, volatility and shareholding patterns.

2.4.           NSDL amends Penalty Structure for delay or failure in submission of VAPT reports

National Securities Depository Limited (“NSDL”) has amended Rule 18.1.1 of its Business Rules relating to the penalty structure applicable for failure or delay in submission of the Vulnerability Assessment and Penetration Testing (“VAPT”) report. The amendment, notified through a Participant Services Circular dated April 27, 2026, strengthens compliance oversight by reinforcing timelines and consequences associated with cyber security reporting obligations of Depository Participants (“DPs”). Participants have been advised to take note of the revised provisions and ensure timely submission of VAPT reports in line with the amended requirements.

2.5.           NSDL conveys SEBI framework on net settlement of funds for FPIs in the cash market

NSDL has informed Designated Depository Participants (“DDPs”) and custodians about a circular issued by the Securities and Exchange Board of India (“SEBI”) introducing a framework for net settlement of funds for transactions carried out by Foreign Portfolio Investors (“FPIs”) in the cash market. The circular, dated April 29, 2026, seeks to streamline and rationalise settlement processes by permitting netting of funds obligations, thereby reducing operational complexity and settlement risk. DDPs and custodians have been directed to take note of the SEBI framework and ensure compliance with the revised settlement mechanism.

2.6.           NSDL directs suspension of demat accounts with KYC records invalidated by KRAs

NSDL has issued directions regarding suspension of demat accounts of existing clients whose Know Your Customer (“KYC”) records have been identified as invalid by KYC Registration Agencies (“KRAs”) after completion of the prescribed validation process. Pursuant to data provided by KRAs for new Permanent Account Numbers updated during March 2026, NSDL has identified non‑compliant demat accounts and made the DP‑wise list available on the e‑PASS portal. These accounts are scheduled to be frozen for debit and credit from May 02, 2026, based on updated KRA data as of April 30, 2026. Participants have been instructed to notify affected clients and follow the prescribed procedure for removal of suspension once KYC deficiencies are rectified.

2.7.           CDSL issues update on implementation of Section 51A of the UAPA following UNSC sanctions amendments

Central Depository Services (India) Limited (“CDSL”) has issued a communiqué dated April 30, 2026 informing Depository Participants of amendments made by the United Nations Security Council (“UNSC”) Committee established pursuant to resolutions 1988 (2011) and related resolutions concerning sanctions linked to ISIL (Da’esh), AlQaida and associated individuals and entities. Acting on an intimation received from the SEBI, CDSL noted that the UNSC has amended seventeen entries in its 1988 Sanctions List through press release SC/16352 dated April 28, 2026. In terms of Section 51A of the Unlawful Activities (Prevention) Act, 1967 (“UAPA”) and Clause 54 of SEBI’s Master Circular on AntiMoney Laundering (“AML”) and Combating the Financing of Terrorism (“CFT”), Depository Participants are required to screen all existing and future accounts to ensure that no account is held by, or linked to, any individual or entity appearing in the updated sanctions lists.

3.               Information Technology & Data Protection

3.1.           CERT-In Flags Critical Vulnerabilities in Google Chrome for Desktop

CERT-In has issued Vulnerability Note CIVN-2026-0209 highlighting multiple vulnerabilities in Google Chrome for Desktop affecting versions prior to 147.0.7727.137 for Linux and 147.0.7727.137/138 for Windows and Mac. The vulnerabilities arise due to issues such as use-after-free, heap buffer overflow, out-of-bounds read/write, type confusion, integer overflow, race conditions, and insufficient input validation, which could be exploited by a remote attacker through specially crafted web requests. Successful exploitation may enable remote code execution, bypass of security restrictions, access to sensitive information, or denial of service (DoS) conditions. CERT-In has advised users and organisations to apply the latest updates released by the vendor to mitigate these risks.

3.2.           CERT-In Flags Information Disclosure Vulnerability in Apple Products

CERT-In has issued Vulnerability Note CIVN-2026-0210 highlighting an information disclosure vulnerability in Apple iOS and iPadOS versions prior to 18.7.8 and 26.4.2. The vulnerability arises due to a logging issue in Notification Services, which could allow an attacker to access system logs or device storage to recover notification data that was not properly deleted. Successful exploitation may enable unauthorized access to sensitive information on the targeted system. CERT-In has advised users and organisations to apply the latest security updates released by Apple to mitigate the identified risks.

4.               Corporate Law and MCA

4.1.           MCA Announces Industry Consultation Workshop for MCA21 NextGen

The Ministry of Corporate Affairs (“MCA”) is inviting technology firms, consulting houses, cloud service providers and corporate law firms to participate in an Industry Consultation Workshop for the upcoming MCA21 NextGen project.  Scheduled tentatively between May 11 and 20, 2026, the workshop aims to gather practical recommendations on improving ease of doing business, strengthening enforcement and deploying emerging technologies within the MCA21 ecosystem. Only one registration per organisation is permitted and interested participants must email their intent and a completed registration form by 3 PM on May 8, 2026.  Details of the agenda and venue will be shared with registered entities.

5.               Taxation

5.1.           Government amends FEMA Non-debt Instruments Rules, 2019

The Ministry of Finance (Department of Economic Affairs) has, vide notification dated May 01, 2026, issued the Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2026, in exercise of powers under Section 46(2) of the Foreign Exchange Management Act, 1999. The amendments, inter alia, revise provisions relating to investment in equity instruments of Indian companies under Schedule I, including conditions governing investments from entities or citizens of countries sharing land borders with India, which shall continue to require Government approval. The rules also clarify treatment of beneficial ownership and extend reporting requirements for certain investments not requiring prior approval. The Amendment Rules have come into effect from the date of their publication in the Official Gazette and are aimed at refining the regulatory framework governing foreign investments in India, particularly in relation to ownership structures and cross-border investment oversight.

5.2.           Government amends GST rate notifications for specified goods

The Ministry of Finance (Department of Revenue) has, vide notifications dated April 30, 2026, issued amendments to the Integrated Goods and Services Tax (Rate), Central Goods and Services Tax (Rate) and Union Territory Goods and Services Tax (Rate) notifications, in exercise of powers under the respective GST legislations. The amendments, inter alia, revise the classification entries under Schedule I and Schedule III by substituting specified tariff items, including updates to goods falling under headings such as 2202 99 21, 2202 99 29, 2202 99 31 and related categories. These changes impact the applicable GST rates, including categories attracting 5 per cent, 2.5 per cent and higher rate slabs such as 20 per cent and 40 per cent.  The revised provisions shall come into effect from May 01, 2026 and are aimed at aligning GST rate schedules with updated product classifications and ensuring consistency across indirect tax frameworks.

6.               Regulatory Enforcement and Compliance Action

Authority	Name of Company / Individual	Amount of Penalty Imposed	Contravention
Securities and Exchange Board of India (SEBI)	Eight entities: Ashok Maheshwari, Darshan Bakul Shah, Khusboo Darshan Shah, Chirag Mahendra Shah, CHL Stock Concepts Pvt Ltd, Benzer Department Stores Pvt Ltd, and connected HUF entities	Consolidated Penalty of INR 1,50,00,000/- (Rupees One Crore Fifty Lakhs only)	Violation of Section 12A of the SEBI Act, 1992 (which prohibits fraudulent and unfair trade practices in the securities market) read with Regulations 3 and 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations), which bar any person from employing manipulative or deceptive devices, or engaging in transactions using non-public information to gain an unfair advantage. The core contravention involved front running where Ashok Maheshwari, having privileged trading information on, "Big Client's" impending large orders, shared this non-public information with Darshan Bakul Shah, who then executed trades ahead of the client across multiple accounts and connected entities to lock in unlawful profits.
Securities and Exchange Board of India (SEBI)	Navnit Gadoya, Chiranggi Irish Shah and Surbhi Aggarwal	Consolidated Penalty of INR 15,00,000/- (Indian Rupees Fifteen Lakhs Only)	Violation of Section 12A of the SEBI Act, 1992 and Regulations 3 and 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations), which prohibit fraudulent, manipulative, and deceptive devices in the securities market. Additionally, SEBI found that the three were non-cooperative during the investigation. One failed to respond to information requests, while the others provided incomplete or misleading submissions and did not attend the personal hearing or respond to the show-cause notice attracting further liability under Section 15A(a) of the SEBI Act.

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