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-UK Comprehensive Economic and Trade Agreement (CETA). The India-UK CETA was signed on 24 July 2025. The UK Parliament completed its scrutiny process in early 2026, with a debate in the House of Commons on 9 February 2026. Implementation discussions between both governments are ongoing, with certain outstanding issues including steel safeguard measures still to be resolved. As of the date of this alert, the agreement has not yet entered into force. Once effective, 99% of Indian exports will enter the UK duty-free, tariffs on UK goods including Scotch whisky and automobiles will be reduced in India, and services trade across IT, financial, legal and educational services will be liberalised.
 
India-GCC Free Trade Agreement Negotiations. On 24 February 2026, India and the Gulf Cooperation Council signed a Joint Statement formally launching FTA negotiations, following the signing of Terms of Reference on 5 February 2026. The statement was signed by Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi in New Delhi. Malaysian companies operating in India with Gulf operations or trade flows through the GCC should monitor progress as negotiations advance.
 
B.  TAX
 
Income Tax Act, 2025. The Income Tax Act, 2025 (Act No. 30 of 2025) came into force on 1 April 2026, replacing the Income Tax Act, 1961. The Act was passed by Parliament on 12 August 2025 and received Presidential assent on 21 August 2025. It is revenue neutral, reducing the legislation from 819 sections to 536 sections across 23 chapters. The key structural change is the replacement of the 'Previous Year' and 'Assessment Year' concepts with a single 'Tax Year'. The Income Tax Rules, 2026 were notified by the Central Board of Direct Taxes (CBDT) on 20 March 2026. June 2026 is the first advance tax instalment cycle under the new framework: taxpayers with an estimated annual liability exceeding INR 10,000 must deposit 15% of the estimated tax liability by 15 June 2026.
 
C.  CORPORATE LAW
 
Corporate Laws (Amendment) Bill, 2026. Introduced in the Lok Sabha on 23 March 2026 (Bill No. 85 of 2026) and referred to a Joint Parliamentary Committee, the Bill proposes amendments to the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. Key proposals include: reduced fast-track merger approval thresholds, with member approval reduced from 90% to a majority holding at least 75% in value (present and voting) and creditor approval from 90% to 75%; designation of the Insolvency and Bankruptcy Board of India as Valuation Authority; expanded powers for the National Financial Reporting Authority, including the ability to issue advisories, censures and warnings; recognition of employee compensation schemes beyond stock options, including Restricted Stock Units and Stock Appreciation Rights; and decriminalisation of a range of technical offences. The Bill is currently before the Joint Parliamentary Committee.
 
Companies Compliance Facilitation Scheme 2026 (CCFS-2026). The Ministry of Corporate Affairs introduced CCFS-2026 by General Circular No. 01/2026 dated 24 February 2026. The scheme is open from 15 April to 15 July 2026, allowing companies to complete outstanding statutory filings at reduced additional fees, or opt for dormant status or voluntary strike-off at concessional rates. Companies with pending defaults should act before the window closes.
 
D.  CAPITAL MARKETS AND FINANCIAL REGULATION
 
SEBI: Minimum Public Shareholding Relaxation. By circular dated 7 April 2026, SEBI granted a one-time relaxation from enforcement action for listed entities unable to meet MPS requirements with deadlines falling between 1 April and 30 September 2026, following market disruption arising from geopolitical tensions in the Middle East. Stock exchanges and depositories have been directed not to initiate fines or freeze promoter shareholding during this period.
 
SEBI: IPO Observation Letter Extension. By the same circular, SEBI extended the validity of IPO observation letters expiring between 1 April and 30 September 2026 until 30 September 2026, providing relief to issuers whose plans were disrupted by prevailing market conditions.
 
SEBI SWAGAT-FI Framework. Effective 1 June 2026, SEBI's Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework streamlines onboarding for Foreign Portfolio Investors and Foreign Venture Capital Investors, introducing 10-year KYC validity and integrated depository registration. The framework is available to eligible low-risk investors including sovereign wealth funds, pension funds, central banks and regulated public retail funds. The provisions were notified by SEBI circular on 1 December 2025 and came into force on 1 June 2026.
 
RBI Monetary Policy. The Reserve Bank of India held its repo rate at 5.25% at its April 2026 Monetary Policy Committee meeting (6 to 8 April 2026), following cumulative cuts of 125 basis points since February 2025. The MPC cited geopolitical risks arising from the West Asia conflict and supply-side inflationary pressures as reasons for the pause. The repo rate was again held at 5.25% at the June 2026 MPC meeting (3 to 5 June 2026).
 
E.   DATA PROTECTION
 
DPDP Act: Phased Implementation. On 13 November 2025, the Ministry of Electronics and Information Technology notified the Digital Personal Data Protection Rules, 2025 and brought Phase 1 of the Digital Personal Data Protection Act, 2023 into force, establishing the Data Protection Board of India. Phase 2, due on 13 November 2026, will bring the Consent Manager framework into operation. All remaining substantive obligations under the Act, including notice and consent requirements, individual rights, breach notification and cross-border data transfer restrictions, become enforceable from 13 May 2027. Malaysian businesses with Indian operations or data flows to or from India should use 2026 to build compliance infrastructure.
 
Country-of-Origin Display for E-Commerce. The Legal Metrology (Packaged Commodities) Amendment Rules, 2026 (G.S.R. 128(E)) were notified on 13 February 2026, requiring e-commerce entities selling imported products in India to display the country of origin in a searchable and sortable filter. A Second Amendment notified on 27 April 2026 extended the effective date to 1 July 2027. Malaysian exporters selling through Indian e-commerce channels should prepare for compliance ahead of that date.
 
F.   INSOLVENCY
 
IBC Amendment Act, 2026. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act No. 6 of 2026) received Presidential assent on 6 April 2026 and was published in the Official Gazette. Key provisions were brought into force on 26 May 2026 by notification S.O. 2625(E). Changes include a mandatory 14-day National Company Law Tribunal (NCLT) admission timeline for Corporate Insolvency Resolution Process (CIRP) petitions; an expanded pre-packaged insolvency mechanism beyond the original Micro, Small and Medium Enterprises (MSME) framework; an extended avoidance transaction look-back period of two years from CIRP initiation; tightened CIRP withdrawal rules; a new Creditor-Initiated Insolvency Resolution Process (CIIRP) under new Chapter IV-A; and provisions on group and cross-border insolvency. Creditors and borrowers in restructuring transactions involving Indian entities should assess the impact of these changes.
 
G.  EMPLOYMENT LAW
 
EPF Wage Ceiling. By gazette notifications S.O. 2701(E) and S.O. 2702(E) dated 29 May 2026, the Ministry of Labour and Employment notified INR 15,000 per month as the wage ceiling for Employees' Provident Fund coverage under Chapter III of the Code on Social Security, 2020. The ceiling has been retained at the existing level. Contributions on wages above this threshold remain voluntary. Employers with Indian operations should confirm their payroll structures reflect the notified ceiling.
 
Social Security (Central) Rules, 2026. On 8 May 2026, the Ministry of Labour and Employment notified the central rules under all four Labour Codes, including the Social Security (Central) Rules, 2026 (G.S.R. 344(E)), consolidating social security obligations at the central level and replacing twelve legacy labour statutes under the Code on Social Security, 2020.
 
Extended Working Hours. Haryana notified the Haryana Shops and Commercial Establishments (Amendment) Act, 2025 on 5 February 2026 (effective from 12 November 2025), raising the daily working hours limit from nine to ten hours. Rajasthan passed a corresponding amendment in February 2026 (effective from 17 December 2025) raising daily working hours from nine to ten hours. Gujarat notified a similar amendment effective retrospectively from 16 December 2025. On 17 February 2026, Uttarakhand issued a notification clarifying that there is no restriction on the opening or closing hours of shops and establishments in the state. Employers operating in these states should ensure their HR policies are updated accordingly.
 
H.    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).