Key Regulatory & Legal Updates in March 2026

1. Ministry of Corporate Affairs (MCA) 

• Corporate Laws (Amendment) Bill, 2026 

The Corporate Laws (Amendment) Bill, 2026 was the month’s biggest headline, focusing on decriminalisation and reducing the compliance burden for smaller players.

• Decriminalisation: Over 20 sections of the Companies Act and LLP Act were moved from criminal to civil liability, replacing potential jail time with monetary penalties.

 

• Small Company Expansion: The definition of a “Small Company” was broadened (Paid-up capital ceiling raised to ₹20 crore; Turnover to ₹200 crore), exempting thousands of firms from rigorous audit requirements.

 

• CSR Relief: The net profit threshold for mandatory CSR was doubled to ₹10 crore, giving mid-sized firms more liquidity.

 

• Triennial KYC: The annual Director KYC (DIR-3) was replaced with a three-year filing cycle, effective March 31, 2026.

 

• Global Tax Alignment: MCA notified the Accounting Standards Amendment Rules, 2026, integrating OECD “Pillar Two” global minimum tax rules into Indian books.

Read More: https://www.mca.gov.in/content/mca/global/en/home.html

2. Securities and Exchange Board of India (SEBI)

• SEBI: Market Liberalisation

SEBI’s March 23 Board Meeting introduced several “pro-investor” and “pro-fund” measures:

• AIF “Inoperative” Status: Alternative Investment Funds (AIFs) struggling with legal tail-ends can now be tagged as “inoperative,” allowing them to wind down without being stuck in a compliance loop.

 

• Retail Social Investing: To boost the Social Stock Exchange, the minimum investment for Social Impact Funds (SIFs) was slashed from ₹2 lakh to just ₹1,000.

 

• FPI Net Settlement: Approved a new “Net Settlement” mechanism for Foreign Portfolio Investors to reduce their currency conversion costs and operational friction.

 

• Governance Revamp: SEBI updated its “Fit and Proper” criteria; a mere FIR no longer triggers automatic disqualification for market intermediaries, ensuring a “guilty until proven” approach is avoided.

Read More: https://www.sebi.gov.in/