Corporate & Compliance Digest May 25, 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.           ESIC strengthens procurement Transparency Norms

The Employment State Insurance Corporation (ESIC) has introduced significant reform aimed at ensuring greater transparency and fairness in its procurement process. Under the new directive, bidders, contractors, suppliers and sellers must mandatorily disclose any direct or indirect relationship or financial interest involving relatives of ESIC officers or officials. Failure to make such disclosure may lead to cancellation of participation in the procurement process. ESIC has further directed all its units to incorporate this clause across all tender related documents irrespective of the procurement mode or value. The move is intended to curb potential conflicts of interest and reinforce integrity in public procurement practices

1.2.      Department of Consumer Affairs issues advisory on use of Customary Units Alongside SI Metric Units under Legal Metrology Law

The Department of Consumer Affairs has clarified that customary units such as inches, feet, square feet, yards, and dozen may be used as supplementary declarations alongside standard SI metric units under the Legal Metrology Act, 2009. The advisory reiterates that SI metric units will continue to remain the legally recognised standard for commercial transactions, regulatory compliance, and consumer protection. Customary units may be displayed only as additional information to facilitate trade, consumer convenience, and international business practices. It has been emphasised that SI units must be prominently declared and shall prevail in case of any dispute or inconsistency. Stakeholders, including manufacturers, importers, and dealers, have been directed to ensure that supplementary declarations are non-misleading and do not create ambiguity regarding quantity, dimensions, or measurements.

2.               Securities & Capital Markets

2.1.           NSE launches iSIF Equity Long-Short Fund NFO on MF Invest platform

The National Stock Exchange of India Limited (“NSE”) has announced the launch of the iSIF Equity Long-Short Fund under the Specialized Investment Fund (“SIF”) category of ICICI Prudential Mutual Fund on the NSE MF Invest platform. The New Fund Offer (“NFO”) will be open from May 19, 2026 to June 02, 2026 until 11:30 PM. The scheme will be available in both Regular Growth and Direct Growth variants, with allotment scheduled for June 05, 2026. Members have been advised to ensure that clear funds are received in the designated Clearing Corporation account on or before June 04, 2026 by 12:00 PM to facilitate successful participation in the subscription process.

2.2.           NSE issues corrigendum on interest rate derivatives contracts for GOI securities

NSE has issued a corrigendum to its earlier circular regarding Interest Rate Derivatives contracts on Government of India (“GOI”) securities. The update introduces Interest Rate Futures and Options contracts for specified GOI securities, effective from May 19, 2026. The contracts include securities such as 6.36 per cent (six point three six per cent) GS 2031 and 6.94 per cent (six point nine four per cent) GS 2036, with defined maturity and exclusion dates. The exchange has also specified contract expiry cycles, lot size of INR 200,000 (Indian Rupees Two Lakh only) equivalent to 2,000 units, and quantity freeze limits. All other provisions of the earlier circular remain unchanged.

2.3.          NCL amends capital market regulations to include Electronic Gold Receipts framework

NSE Clearing Limited (“NCL”) has amended its Capital Market Regulations to incorporate provisions relating to Electronic Gold Receipts (“EGRs”), in line with the Securities and Exchange Board of India (“SEBI”) Master Circular dated June 24, 2024. The amendments extend the applicability of the regulations to clearing members dealing in the EGR segment and formally define EGRs for clearing and settlement purposes. Additionally, a new chapter has been introduced governing assaying agencies, including norms for their accreditation and procedures for handling complaints regarding gold purity. The regulations also clarify that assaying-related costs, including transportation and testing charges, shall be borne by the beneficial owner requesting such services.

2.4.           NSDL circulates SEBI master circular on surveillance of securities market

National Securities Depository Limited (“NSDL”) has issued a circular drawing attention to the SEBI Master Circular dated May 15, 2026 on surveillance of the securities market. Participants have been advised to take note of the framework and ensure compliance with the prescribed surveillance and monitoring requirements. The circular also reiterates ongoing compliance obligations, including monthly investor grievance reporting, reporting on common contact details across accounts, and annual reporting on Artificial Intelligence (“AI”) and Machine Learning (“ML”) systems.

2.5.           NSDL circulates SEBI framework on permitted borrowings by InvITs exceeding 49 per cent

NSDL has circulated a SEBI circular concerning the permitted use of fresh borrowings by Infrastructure Investment Trusts (“InvITs”) where net borrowings exceed 49 per cent (forty-nine per cent) of the value of InvIT assets. SEBI has expanded the scope of permissible utilisation of such borrowings to include capital expenditure for asset enhancement or capacity augmentation, major maintenance expenses for road projects, and refinancing of existing debt subject to specified conditions. In particular, refinancing is restricted to the principal portion of the original debt and must relate to borrowings utilised for permitted purposes. The circular is effective immediately.

2.6.           NSDL circulates SEBI framework on status of SPVs post concession termination

NSDL has issued a circular highlighting SEBI’s revised framework on the status of Special Purpose Vehicles (“SPVs”) following the conclusion or termination of concession agreements under the InvIT Regulations. SEBI has clarified that such SPVs will continue to retain their classification, subject to conditions including mandatory exit or acquisition of a new infrastructure project within one year from specified trigger events. The framework also mandates detailed disclosures at both InvIT and SPV levels, covering asset-liability positions, contingent liabilities, debt repayment status, and exit strategies. The provisions have come into force with immediate effect.

2.7.           CDSL circulates SEBI relaxation in timelines for regulatory compliance

Central Depository Services (India) Limited (“CDSL”) has issued a communiqué referring to the SEBI circular dated May 15, 2020 on relaxation in timelines for compliance with regulatory requirements. The relaxations were granted in view of the COVID-19 pandemic and extend deadlines for various filings and compliance obligations applicable to trading members, clearing members and depository participants. CDSL has advised participants to take note of the extended timelines and ensure adherence to the revised compliance schedule, while all other provisions of the earlier circulars remain unchanged.

2.8.           CDSL circulates SEBI framework on status of SPVs post concession termination

CDSL has issued a communiqué drawing attention to the SEBI circular dated May 15, 2026 on the status of SPVs following the conclusion or termination of concession agreements under the InvIT framework. SEBI has clarified that such SPVs shall continue to retain their classification subject to specified conditions, including exit or acquisition of a new infrastructure project within one year from relevant trigger events. The framework further mandates detailed disclosures at both InvIT and SPV levels, including information on assets and liabilities, contingent liabilities, debt repayment, and exit strategy. The circular is effective immediately.

2.9.           CDSL introduces online updation facility for DP service centres

CDSL has introduced an online facility through the ‘Easiest’ portal for Depository Participants (“DPs”) to update details of DP service centres. The facility enables DPs to add, modify or delete service centre records and update demographic details such as email addresses, mobile numbers and addresses. DPs are required to verify the existing service centre data against their records and make necessary updates in case of discrepancies. Additionally, in the event of closure of a service centre, DPs must provide at least 30 days’ prior notice to clients before deletion of the service centre from records.

3.               Information Technology & Data Protection

3.1.           CERT-In Flags Multiple High-Severity Vulnerabilities in Mozilla Products

CERT-In has issued Vulnerability Note CIVN-2026-0261 highlighting multiple vulnerabilities in Mozilla Firefox, Firefox ESR, Firefox for iOS, and Thunderbird products. The vulnerabilities could allow remote attackers to execute arbitrary code, obtain sensitive information, perform spoofing attacks, bypass security restrictions, or cause denial-of-service conditions on affected systems. The advisory identifies issues including integer overflows, use-after-free conditions, sandbox escapes, privilege escalation, same-origin policy bypass, memory safety bugs, and information disclosure vulnerabilities across multiple Mozilla components. CERT-In has advised organisations and individuals using affected Mozilla products to apply the latest vendor security updates to mitigate the risk of system compromise, sensitive information disclosure, and service disruption.

3.2.           CERT-In Issues High-Severity Advisory on Multiple Vulnerabilities in Intel Products

CERT-In has issued Advisory CIAD-2026-0024 highlighting multiple vulnerabilities affecting various Intel products, including Intel processors, drivers, firmware, Ethernet drivers, Intel Vision software, Intel EMA software, Intel Slim Bootloader, Intel NPU drivers, and Intel Data Center Graphics Driver software. The vulnerabilities arise from issues such as improper input validation, buffer overflows, use-after-free conditions, integer overflows, out-of-bounds read/write, pointer dereference errors, divide-by-zero conditions, and unchecked return values. CERT-In has stated that successful exploitation could allow attackers to gain elevated privileges, obtain sensitive information, and cause denial-of-service conditions, potentially leading to full system compromise, operational disruption, or information disclosure. Users and organisations have been advised to apply the latest Intel security updates to mitigate the identified risks.

3.3.           CERT-In Flags Critical Vulnerabilities in NVIDIA Triton Inference Server

CERT-In has issued Vulnerability Note CIVN-2026-0259 highlighting multiple critical vulnerabilities in NVIDIA Triton Inference Server versions prior to r26.03 for Linux and DALI Backend. The vulnerabilities arise from improper authentication handling, insufficient path validation, integer overflow conditions, out-of-bounds read issues, and uncontrolled resource consumption within core components and the DALI backend. CERT-In has stated that successful exploitation could allow attackers to execute arbitrary code, escalate privileges, bypass authentication mechanisms, cause denial-of-service conditions, disclose sensitive information, or tamper with data on targeted systems. The advisory impacts organisations and individuals using NVIDIA Triton Inference Server for AI model deployment and inference operations, and users have been advised to apply the latest security recommendations issued by NVIDIA to mitigate the identified risks.

3.4.       CERT-In Issues High-Severity Advisory on Multiple Vulnerabilities in Microsoft Products

CERT-In has issued Vulnerability Note CIVN-2026-0256 highlighting multiple vulnerabilities affecting Microsoft Windows, Windows Server, Microsoft Office, Microsoft SharePoint Server, and Microsoft Edge products. The vulnerabilities arise from improper input validation, memory corruption issues, insufficient restriction of operations within memory buffers, improper access control mechanisms, and improper handling of objects in memory. CERT-In has stated that successful exploitation could allow attackers to execute arbitrary code, elevate privileges, disclose sensitive information, bypass security protections, or cause denial-of-service conditions on affected systems. Some vulnerabilities may be exploited remotely or without authentication, while others may require user interaction such as opening malicious files or accessing crafted web content. Organisations and individuals using affected Microsoft products have been advised to apply the latest vendor security updates to mitigate the identified risks.

4.               Taxation

4.1.           GSTN issues advisory on enhancements in e-Way Bill (EWB) Portal

Goods and Services Tax Network (“GSTN”) has introduced key enhancements in the e-Way Bill (“E0WB”) system to improve data integrity, traceability of goods movement, and transaction closure mechanisms. In Bill-To/Ship-To transactions, capturing the “Ship To GSTIN” has been made mandatory, with “URP” to be used for unregistered consignees. A new voluntary EWB Closure facility has also been introduced, allowing suppliers, recipients, transporters, or authorised persons to close EWBs upon delivery completion through the portal or API integration. The closure can be performed EWB-wise or date-wise, including via registered mobile numbers. Necessary API changes have been released in the Sandbox environment and will go live in production by 15 June 2026. ERP vendors, GSPs, ASPs, and taxpayers are advised to update systems, complete testing, and ensure readiness for seamless compliance with the revised EWB framework.

4.2.           GSTN introduces a standardised Annexure-B Offline Utility for utility for ITC refund applications

Goods and Services Tax has introduced a standardised Annexure-B Offline Utility on the GST portal to streamline and automate refund applications involving accumulated Input Tax Credit (ITC). Going forward, taxpayers filing refund claims under categories such as exports without payment of tax, SEZ supplies, inverted duty structure, and export of electricity must submit Annexure-B through the prescribed Excel-based utility instead of PDF format. The utility requires invoice-wise inward supply details to be reported HSN/SAC-wise along with segregation of inputs, input services, and capital goods. Enhanced validations, including duplicate checks and GSTR-2B matching, have also been introduced to improve accuracy and system-based verification. Taxpayers can upload up to 2,50,000 line items across multiple utility files in a single refund application. GSTN has advised taxpayers, ERP teams, and stakeholders to ensure accurate data reporting, comply with JSON upload guidelines, and familiarise themselves with the revised refund filing process to facilitate smooth processing of ITC refund claims.

5.               Regulatory Enforcement

Authority	Name of the Company/ Individual	Amount of Penalty Imposed	Contravention
Registrar of Companies (ROC), Haryana	Acuity Knowledge Centre (India) Private Limited (“Company”), Anupam Tyagi, Avadhesh Kumar Dixit, Paul Joseph Alapat, Rajul Surabhi Vohra, Anish Ailawadi	INR 37,26,244/- (Indian Rupees Thirty-Seven Lakhs Twenty Six Thousand Two Hundred and Forty-Four only) on the Company and INR 1,86,312/- (Indian Rupees One Lakh Eighty-Six Thousand Three Hundred and Twelve only) on each individual.	The Company failed to transfer the unspent CSR amount for FY 2022-23 to the Fund specified in Schedule VII within the stipulated Violation six months from the expiry of the financial year (i.e., on or before 30 September 2023), as required under Section 135(6) of the Companies Act, 2013. Instead, the said amount was transferred belatedly on 14.08.2024, thereby violating Section 135(6) and attracting penal provisions under Section 135(7) of the Act.
Registrar of Companies (ROC), Patna	SHG Mutual Benefits Nidhi Limited (“Company”)	Consolidated Penalty of INR 7,36,700/- (Indian Rupees Seven Lakhs Thirty-Six Thousand Seven Hundred only) on the Company and INR 2,50,000/- (Indian Rupees Two Lakhs Fifty Thousand only) on the Director	Violation of Section 92(4) of the Companies Act, 2013, for not filing the Annual Return for FY 2018-19, 2019-20, 2020-21, 2022-23, 2023-24. Penalties were imposed on the Company, and the Director vide five different orders under Section 92 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