Here are the latest key developments in Indian law that may affect Indian companies and Malaysian companies doing business in India:
 
A. INDIA-MALAYSIA BILATERAL DEVELOPMENTS
 
India-Malaysia Trade Momentum. Bilateral trade between India and Malaysia reached approximately USD 13 billion in FY26 (up to November 2025), with Malaysia ranking as India's 16th largest trading partner and India remaining one of Malaysia's top ten global trading partners. Both governments have continued discussions on fast-tracking the ASEAN-India Trade in Goods Agreement (AITIGA) review and deepening cooperation under the Comprehensive Economic Cooperation Agreement (CECA), with Malaysian companies encouraged to monitor developments as the review progresses.
 
B. CORPORATE LAW
 
Corporate Laws (Amendment) Bill, 2026. The Joint Parliamentary Committee submitted its report on the Bill on 3 August 2026, recommending amendments to the Companies Act 2013 and the LLP Act 2008. Key proposals include doubling the 'small company' thresholds to INR 20 crore paid-up capital and INR 200 crore turnover, lowering the fast-track merger approval threshold from 90% to 75% of shareholding, raising the CSR net-profit trigger to INR 10 crore, permanent legal recognition of virtual AGMs, and expanded National Financial Reporting Authority powers over audit oversight. The Bill now returns to Parliament for consideration and passage.
 
C. BANKING AND FINANCIAL REGULATION
 
RBI Holds Repo Rate at 5.25%. At its 62nd Monetary Policy Committee meeting held from 3 to 5 August 2026, the RBI unanimously kept the repo rate unchanged at 5.25%, retaining its neutral stance and revising GDP growth guidance upward to 6.7%. The Standing Deposit Facility, Marginal Standing Facility and Bank Rate remain at 5.00%, 5.50% and 5.50% respectively; the next MPC meeting is scheduled for 5 to 7 October 2026.
 
RBI Consolidates Rules on Special Rupee Vostro Accounts. By A.P. (DIR Series) Circular No. 19 dated 17 July 2026, the RBI consolidated instructions governing SRVAs used for INR settlement of cross-border trade, with immediate effect. Authorised dealer banks must continue reporting SRVA details under the FEDAI-maintained directory.
 
RBI Introduces Prudential Framework for Bank-Acquired Immovable Assets. Directions dated 16 July 2026 create a dedicated regime for 'Specified Non-Financial Assets' acquired by banks in loan recoveries, mandating board-approved policies, prescribed valuation methods and disposal by public auction, effective 1 October 2026.
 
SEBI Overhauls Custodian Fee Structure. The SEBI (Custodian) (Amendment) Regulations 2026, notified 3 July 2026, replace the annual custodian fee with a monthly charge of INR 85,000 or 0.0000416% of assets under custody (whichever is higher), effective 1 October 2026.
 
SEBI Operationalises Intraday Borrowing Facility for Mutual Funds. A circular dated 10 July 2026 brings the intraday borrowing framework for mutual funds into effect from 1 September 2026, alongside revised depository norms effective the same date.
 
D. EMPLOYMENT LAW
 
New EPF, Pension and EDLI Schemes, 2026. The Ministry of Labour and Employment notified the Employees' Provident Funds Scheme, 2026, the Employees' Pension Scheme, 2026, and the Employees' Deposit-Linked Insurance Scheme, 2026 on 29 June 2026, effective 1 July 2026, replacing the corresponding 1952, 1995 and 1976 schemes under the Code on Social Security, 2020. The contribution structure (12% of wages, subject to the INR 15,000 wage ceiling) remains largely unchanged, but the schemes introduce statutory claim-processing timelines (scrutiny within 5 days, settlement within 20 days), revised partial withdrawal conditions after 12 months of membership, and a late filing fee of INR 500 per day. Three transition initiatives, the Employees' Enrolment Campaign 2026, VISHWAS 2026 and AMNESTY 2026, offer employers the opportunity to regularise historical compliance gaps and pending disputes, with the enrolment campaign ceasing on 31 October 2026. Employers with Indian operations should review payroll and compliance processes against the new framework.
 
Reported Proposal to Raise EPF Wage Ceiling. Media reports in July 2026 indicate the Finance Ministry has informally considered raising the EPF wage ceiling from INR 15,000 to INR 25,000 per month, with a possible effective date of 1 April 2027. As at the date of this alert, the proposal has not received Cabinet approval or formal gazette notification, and employers should not amend payroll structures until an official notification is issued.
 
E. HOW CAN THE INDIA DESK ASSIST YOU?
 
Skrine's India Desk aims to support Indian companies in Malaysia and Malaysian companies in India. We advise on investments, contracts, regulatory compliance and disputes. We work closely with leading Indian law firms and consultants to give clients clear and practical advice. Please contact us at indiadesk@skrine.com if you would like to discuss how these developments affect your business.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact Skrine's India Desk (indiadesk@skrine.com).