Key Regulatory & Legal Updates in September 2025
- Ministry of Corporate Affairs (MCA)
- Fast-Track Merger (FTM) / Merger-Demerger Overhaul
On 4 September 2025, MCA exploded into the horizon with a notification fundamentally altering the framework on the Fast-Track Merger route allowing:
- Unlisted, non-Section 8 companies with borrowings of up to ₹200 crore, and with no previous default, may now qualify for this process.
- Mergers occurring between subsidiaries (even if not 100% owned) and a holding company will qualify, subject to conditions being met (i.e., not a public company, no creditor objection, etc.).
Read More: https://www.mca.gov.in/content/mca/global/en/home.html
- Securities and Exchange Board of India
- LODR (Listing Obligations & Disclosure Requirements) – Third Amendment Regulations, 2025
On 8 September 2025, the Listing Obligations and Disclosure Requirements (Third Amendment) Regulations 2025 were published by SEBI provides that:
- Mandating dematerialisation of securities for certain categories, reducing exceptions.
- Tightening / expanding disclosures for Not-for-Profit (NPO) entities listed on the Social Stock Exchange (impact / non-financial, social impact reporting) to be furnished within 60 days of financial year end.
- Some simplifications in exceptions / provisos (removal of carve-outs) in Schedule VII of LODR.
Read More: https://www.sebi.gov.in/
- Materiality thresholds for RP (Related Party) Transactions based on rates of turnover for remuneration amounts, etc
Revised RPT (Related Party Transactions) Standards (as of 1 September 2025) The revised RPT (related party transactions) standards replaces the recommencement of circulars and rationalised the regime ( e.g., scale based thresholds based on your amounts tied to outcome thresholds). Desirably, the aim here is to ease the burden of reporting obligations on less significant RPTs while providing oversight of material RPTs theoretically.
Read More: https://www.sebi.gov.in/