Compliance Brief | August 2026
Updated: Sep 12
Regulatory & Legal Developments — Corporate, Securities & Regulatory Intelligence
August 2026 was a month in which the substance of regulation moved as much as its procedure — new accounting treatment for green-power contracts, a first amendment to the MSMED Act in two decades, a uniform recovery-conduct code for every category of lender, and a proposed rebuild of SEBI's settlement framework.
This edition covers eighteen updates from the Ministry of Corporate Affairs, the Reserve Bank of India, the Securities and Exchange Board of India and the Exchanges, together with three pronouncements of the Supreme Court, the Securities Appellate Tribunal and SEBI.
Below is August at a glance — the eight developments with the widest reach. The complete issue, with the full regulatory text and my practical takeaway on all 21 items, is available on request and on the firm's website (link below).
August 2026 at a Glance
1. Ind AS amended for green-power contracts, ESG-linked loans and electronic settlement A dedicated framework enters Ind AS 109 and 107 for nature-dependent electricity contracts, with new guidance on ESG-linked interest terms. The substantive changes apply for annual reporting periods beginning on or after April 1, 2026. Who should care: Ind AS preparers, CFOs, audit committees, auditors
2. CCFS-2026 extended a second time, to September 15, 2026 The reduced additional-fee window for pending statutory filings stays open on unchanged terms. Companies relying on the Scheme should not assume a further extension. Who should care: Companies with pending statutory filings; Company Secretaries
3. MSMED Act amended for the first time in two decades Udyam registration and the twin classification criteria gain statutory backing; delayed-payment claims get online dispute resolution and fixed timelines; CPSEs must settle MSME invoices through TReDS; several offences move to graded civil penalties. Who should care: Buyers transacting with MSME suppliers; CPSEs; CFOs and procurement
4. A common recovery-conduct framework for every category of lender, from January 1, 2027 Nine Amendment Directions cover fair treatment of borrowers, conduct of employees and recovery agents, agent due diligence and training, and device-based recovery from a borrower's financed mobile device. Who should care: Banks, co-operative banks, AIFIs, NBFCs, housing finance companies
5. Repo rate held at 5.25% for a fourth consecutive review The stance remains neutral. Headline CPI inflation rose above the 4% target in June 2026 for the first time in seventeen months, while the FY 2026-27 real GDP growth projection was raised to 6.7%. The next review is October 5 to 7, 2026. Who should care: Lenders, treasury teams, CFOs
6. SEBI proposes to rebuild its settlement framework A draft replacing the 2018 Regulations would introduce a stage factor from 0.2 to 1.5 and, for the first time, permit settlement while an appeal is pending before SAT or the Supreme Court. Comments close September 4, 2026. Who should care: Entities facing or anticipating SEBI proceedings; securities counsel
7. The Exchanges press listed entities on UPSI handling NSE and BSE set out best practices following observations in certain cases, covering the structured digital database, leakage-prevention policies, periodic training and operationalisation of the Code of Conduct under the PIT Regulations. Who should care: All listed entities, compliance officers, Boards, intermediaries and fiduciaries
8. Supreme Court closes the door on motive as a defence to insider trading Once possession of UPSI and trading during the UPSI period are established, Regulation 4(1) of the PIT Regulations, 2015 does not permit an inquiry into the insider's motive or business purpose, and the use of the sale proceeds is irrelevant. Who should care: Promoters, designated persons, Boards, compliance officers
Comments, corrections and queries are always welcome.
Sandeep Lakhotia FCS, FCA | Founder, Sandeep Lakhotia & Associates, Company Secretaries | 28+ years advising Boards, promoters, CFOs and compliance teams on regulatory matters
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