Editorial February 2026

Dear Readers,

During the month of February 2026 Team RNM is pleased to share that commercial operations of the RNM Capital Trust, the Gift City based licensed Alternative Investments Fund (AIF) category 3 commenced. The Fund is our small contribution towards achieving the vision of Honorable Prime Minister Modi of converting Gift City, an International Financial Service Centre (IFSC) into the Singapore of India. We are grateful to the non resident investors who have reposed faith in our asset management services and bought into the long term India growth story. 

During this past month, Mr. Raghu Marwah, CEO of RNM India also visited United Kingdom and met various leading Accountants, Lawyers, Bankers, Fund Managers, besides meeting the team at RNM UK office again. The pinnacle of the visit, was the visit to the House of Lords for interaction with Lord Rami Ranger, Lord Raj Loomba and Lord Krish Raval.   

The Reserve Bank of India has issued the Foreign Exchange Management (Borrowing & Lending) (First Amendment) Regulations 2026 thereby amending the earlier 2018 regulations. These regulations have brough significant changes in the External Commercial Borrowing (ECB) framework. The major liberalization in the ECB policy deals with acquisition financing which has now been permitted and removal of All-In-Cost ceilings. This provides a fillip to the M&A sector which should see much higher deal flows on the back of this liberalization.    

On the Income Tax front, the Central Board of Direct Tax (CBDT) has issued draft Income Tax Rules, 2025 and forms corresponding to the new tax code which is coming into effect from 1 April 2026. Specifically the new Form 26, corresponding to the earlier Form 3CD, for Tax Audit has undergone major changes with widening of scope and additional clauses. The Tax Audit season this year would require a lot more effort from both auditor and auditee to prepare and verify the details now required.

On the assurance front, the ICAI has issued FAQs clarifying the accounting implications of the new Labour Codes, particularly in regard to gratuity  leave encashment, year end reporting, exceptional items and tax impact.  

We would like to take this opportunity of wishing all our readers all the best for Holi, the festival of colors. Holi signifies the triumph of good over evil, the arrival of spring and the strengthening of social bonds through joy and forgiveness.