Press Release No. 25/2026, Dated 15.04.2026

The Securities and Exchange Board of India (SEBI) has entered into a Memorandum of Understanding (MoU) with the Department of Telecommunications (DoT) to strengthen cooperation in tackling cybercrime and financial fraud in the securities market.

1. Objective of the MoU

The collaboration aims to:

• Enhance coordinated action against cyber-enabled financial frauds
• Prevent misuse of telecom infrastructure for fraudulent activities
• Strengthen investor protection mechanisms

2. Data Sharing and Intelligence Exchange

• The MoU enables regular sharing of data and information between SEBI and DoT
• Utilises the Digital Intelligence Platform (DIP) developed by DoT:

1. 1. Facilitates secure and real-time intelligence exchange
   2. Helps identify suspicious telecom patterns linked to frauds

3. Focus on Telecom Misuse

The initiative targets:

• Spam calls and messages used in investment scams
• Misuse of telecom channels for:

1. 1. Market manipulation
   2. Fraudulent schemes

4. Strengthening Inter-Agency Coordination

The arrangement will:

• Improve regulatory coordination and response time
• Enable proactive detection and prevention of frauds
• Support joint enforcement actions

5. Conclusion

The SEBI–DoT MoU represents a collaborative, technology-driven approach to combating cyber-enabled financial fraud, enhancing the integrity and security of the securities market ecosystem.

Click Here To Read The Full Press Release

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Policy-01/2/2025-CL-V-MCA-Part(2), Dated 08.04.2026

The Ministry of Corporate Affairs (MCA) has issued draft amendments to the Companies (Incorporation) Rules, 2014, aimed at streamlining the incorporation process and reducing compliance burden.

1. Consolidation of Forms

• Multiple existing forms are proposed to be merged into two simplified e-forms:

1. 1. E-CHNG
   2. E-CON

• Objective:

1. 1. Eliminate repetitive filings
   2. Simplify procedural requirements

2. Rationalisation of KYC and Documentation

The draft proposes:

• Simplified KYC norms
• Reduced documentation requirements
• Streamlined name reservation provisions

3. Removal of Certain Requirements

Key relaxations include:

• No affidavit requirement for conversion of One Person Company (OPC)
• Removal of DIR-12 filing at the time of incorporation

4. Flexibility in Registered Office Compliance

• Greater flexibility in:

1. 1. Registered office documentation
   2. Physical verification requirements

• Increased reliance on electronic communication

5. Updates to Specific Provisions

The amendments also:

• Revise provisions relating to:

1. 1. Shifting of registered office
   2. Section 8 companies

• Liberalise integration under SPICe+ framework, including increase in DIN (Director Identification Number) limits

6. Public Consultation

• MCA has invited comments from stakeholders
• Last date for submission: 9th May 2026

7. Conclusion

The proposed amendments reflect MCA’s intent to create a simplified, digital-first, and business-friendly incorporation regime, reducing procedural complexity while maintaining regulatory effectiveness.

Click Here To Read The Full Update

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Press Release No.24/2026, Dated 15.04.2026

Shri K. V. R. Murty has taken charge as a Whole-Time Member of the Securities and Exchange Board of India (SEBI) on 15th April 2026.

1. Extensive Professional Experience

He brings over three decades of experience across key domains, including:

• National security
• Corporate laws
• Public finance

2. Previous Roles and Contributions

Prior to joining SEBI, he:

• Served as Additional Controller General of Defence Accounts
• Held significant roles in the Ministry of Corporate Affairs (MCA), where he was involved in:

1. 1. Policy formulation
   2. Corporate law administration

3. Regulatory Significance

His appointment is expected to:

• Strengthen SEBI’s capabilities in regulatory oversight and governance
• Bring valuable insights from public finance and corporate regulation
• Support policy development and enforcement

4. Conclusion

With a strong background spanning multiple critical sectors, Shri K. V. R. Murty’s appointment is set to contribute significantly to SEBI’s mission of maintaining market integrity and protecting investor interests.

Click Here To Read The Full Press Release

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Case Details: Arup Sarkar vs. State of West Bengal - [2026] 185 taxmann.com 506 (Calcutta)

Judiciary and Counsel Details

• Raja Basu Chowdhury, J.
• Bikramaditya Ghosh, Rajeev Parik, Mayank Bhandari, Ms Ved Rai, Debojyoti Basak & Vivek Saha for the Petitioner.
• Pretom Das & Bikash Singha for the Respondent.

Facts of the Case

The petitioner challenged the cancellation of his GST registration, which had been effected solely on the ground of non-filing of returns. It was submitted that due to such cancellation, the petitioner was effectively barred from carrying on his business operations, as he could neither issue tax invoices nor undertake regular commercial activities. The petitioner emphasised that there was no allegation from the department regarding any tax evasion, fraud, or adoption of dubious practices, and that the cancellation was causing severe financial hardship while also adversely impacting overall tax collection. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the power of cancellation of registration must be exercised judiciously and not in a mechanical manner as per Section 29, read with Section 30 of the CGST Act and West Bengal GST Act. It was observed that where the default is limited to non-filing of returns, and there is no allegation of tax evasion, cancellation of registration would be counterproductive, as it prevents the assessee from carrying on business and consequently affects the flow of revenue to the exchequer. The Court emphasised the need for a pragmatic approach and relied on earlier judicial precedent to hold that restoration of registration should be permitted in such cases. Accordingly, the impugned cancellation order was set aside, and the authorities were directed to restore the registration, subject to the condition that the petitioner file all pending returns and discharge the entire tax liability, including applicable interest, fines, and penalties, within the stipulated time frame.

List of Cases Reviewed

• Subhankar Golder v. Asstt. CST [2024] 163 taxmann.com 99/104 GST 382/87 GSTL 88 (Cal) (Para 6) followed

List of Cases Referred to

• Subhankar Golder v. Asstt. CST [2024] 163 taxmann.com 99/104 GST 382/87 GSTL 88 (Cal) (para 6).

The post GST Registration Cancellation for Non-Filing Set Aside | HC appeared first on Taxmann Blog.

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Case Details: PGP & SONS vs. REGIONAL DIRECTOR, EMPLOYEES STATE INSURANCE CORPORATION - [2026] 185 taxmann.com 75 (Kerala)[30-03-2026]

Judiciary and Counsel Details

• Sathish Ninan & P. Krishna Kumar, JJ.
• K. John Mathai, Adv. & E.K. Nandakumar, Sr. Adv. for the Appellant.
• T.V. Ajayakumar, Adv. for the Respondent.

Facts of the Case

In the instant case, the erstwhile firm P.G. Parameswara Iyer and Sons was engaged in the trading of consumer goods, tea and coffee, and was covered under the ESI Act. Upon the death of the founder, his three sons decided to dissolve the partnership to facilitate partition of family properties.

The business of the erstwhile firm was discontinued on 31.03.2001. Thereafter, one son, along with his children, formed M/s P.G. Parameswara Iyer and Company at Kozhikode, while another son, along with his children, formed M/s PGP and Sons at Palakkad. Both newly constituted firms carried on the same line of business and each employed fewer than ten persons. The ESI authorities contended that both firms were covered under the Act.

M/s P.G. Parameswara Iyer and Company approached the ESI Court, Kozhikode, seeking a declaration of non-coverage with effect from 01.04.2001. The claim was allowed, with the Court holding that it was an independent establishment and, having fewer than ten employees, was not covered under the Act. However, M/s PGP and Sons approached the ESI Court, Palakkad for similar relief, which was rejected on the ground that it was a continuation of the earlier establishment and hence covered under the Act.

Aggrieved, the ESI Corporation and the respective applicants filed appeals. It was noted that the partners of the two new firms were different, the firm names were distinct, and fresh capital had been introduced in each partnership. All employees of the erstwhile firm were paid terminal benefits upon closure. New bank accounts were opened, and fresh registrations were obtained under the Sales Tax, Employees Provident Fund, and Labour laws with effect from 01.04.2001. New PAN cards were also obtained. The partnership deeds provided for re-employment of workers, and applications for registration were submitted simultaneously to the Registrar of Firms, with due intimation of the new constitution.

High Court Held

The High Court observed that, upon execution of the new partnership deeds and commencement of business thereunder, it must be inferred that the erstwhile firm stood dissolved. Since the old and new entities could not co-exist, dissolution could be implied from the surrounding circumstances.

Accordingly, the mere fact that a formal dissolution deed was executed only on 25.09.2002 would not imply that the erstwhile firm continued until that date. The High Court therefore held that both applicant firms were independent establishments and were not covered under the ESI Act.

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Case Details: SFC Global Commodity (P.) Ltd. vs. Union of India - [2026] 185 taxmann.com 435 (Gujarat)

Judiciary and Counsel Details

• A.S. Supehia & Pranav Trivedi, JJ.
• Hardik P. Modh for the Petitioner.
• Ms Tanushree Shrimal, Asstt. Govt. Pleader & Ms Hetal G. Patel, Senior Standing Counsel for the Respondent.

Facts of the Case

The petitioner filed a writ petition challenging the order passed by the Deputy Commissioner and the subsequent dismissal of its appeal by the first appellate authority. It had specifically contended in its appeal memo that it had furnished timely replies to RFT-08 notices and had expressly requested a personal hearing, which was not granted. It was further argued that the delay in filing refund application in RFT-01 was attributable to system-related constraints and not due to any lapse on its part. Despite placing these detailed factual and legal submissions on record, the appellate authority dismissed the appeal solely on the ground of non-appearance, without examining the merits of the case or addressing the issues raised in the written submissions. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that, under Section 107 read with Section 75 of the CGST Act and the Gujarat GST Act, quasi-judicial authorities are obligated to pass a reasoned and speaking order addressing the contentions raised by the assessee. It emphasized that mere non-appearance of the appellant cannot justify summary dismissal of an appeal, especially where detailed written submissions are already on record. It noted that the appellate authority failed to consider key issues such as denial of personal hearing and system-driven delays, thereby violating principles of natural justice. Accordingly, the impugned order was set aside and the matter was remanded for fresh adjudication with a direction to grant an opportunity of hearing.

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Press Release No.26/2026, Dated 16.04.2026

The Securities and Exchange Board of India (SEBI) has entered into a Memorandum of Understanding (MoU) with the Financial Intelligence Unit – India (FIU-IND) to enhance cooperation in implementing the Prevention of Money Laundering Act (PMLA) and related rules.

1. Objective of the MoU

The collaboration aims to:

• Strengthen anti-money laundering (AML) enforcement in the securities market
• Improve detection and prevention of financial crimes
• Enhance regulatory coordination and intelligence sharing

2. Data Sharing and Information Exchange

• The MoU enables regular sharing of data and information between SEBI and FIU-IND
• Facilitates:

1. 1. Identification of suspicious transactions
   2. Tracking of illicit financial flows
   3. Better risk assessment and monitoring

3. Strengthening Regulatory Oversight

The arrangement will:

• Improve coordination between financial and market regulators
• Enable timely and effective action against fraud
• Support compliance with PMLA obligations by market participants

4. Impact on Securities Market

The initiative is expected to:

• Enhance transparency and integrity of the securities market
• Reduce instances of money laundering and fraud
• Strengthen investor confidence

5. Conclusion

The SEBI–FIU MoU marks a significant step towards a collaborative, intelligence-driven regulatory approach, reinforcing India’s efforts to combat financial crime and ensure a robust compliance ecosystem in the securities market.

Click Here To Read The Full Press Release

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Notification F. No. SEBI/LAD-NRO/GN/2026/300, Dated 15.04.2026

Click Here To Read The Full Notification

The post SEBI Revises Fit & Proper Criteria Under Intermediaries Regulations appeared first on Taxmann Blog.

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The Institute of Chartered Accountants of India (ICAI), through its Auditing and Assurance Standards Board (AASB), has announced the constitution of an “Expert Panel” to provide technical guidance to members on issues relating to statutory audit and allied auditing aspects. This initiative, continuing the practice followed over the past four years, is aimed at supporting auditors in navigating the increasingly complex business and regulatory environment marked by the rise of start-ups, public listings, and evolving reporting requirements.

The Panel, will be operational from 16th April 2026 to 30th September 2026. During this period, members can submit their audit-related queries via email to seek expert guidance on practical issues encountered during audit engagements.

ICAI has emphasised that queries should be concise yet factually complete, while strictly maintaining client confidentiality by avoiding disclosure of entity names. Members are also advised against submitting duplicate queries or repeated follow-ups on the same matter. The mechanism is intended to serve as a guiding aid, and members are expected to exercise professional judgment in applying the responses to their specific engagements.

It is clarified that the responses provided by the Expert Panel will reflect the personal views of the experts and shall not be construed as official positions of the AASB or ICAI. Accordingly, neither the Institute nor the Panel members assume responsibility for actions taken based on such guidance. Further, such views are not admissible as evidence in judicial or quasi-judicial proceedings. The AASB also reserves the discretion to decline responding to any query without assigning reasons, depending on its nature.

Click here to access the announcement

Click Here To Read The Full Story

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Case Details: Deputy Commissioner of Income-tax (BPU-2) vs. Brook Multimedia (P.) Ltd. [2026] 185 taxmann.com 443 (SAFEMA-New Delhi)

Judiciary and Counsel Details

• Gopal Chandra Mishra & Rajesh Malhotra, Member
• Manmeet S. Arora, SPP for the Appellant.
• Ashwani Taneja, Ashish Tandon & Ms Gunjan Chauhan, Advs. for the Respondent.

Facts of the Case

The appellant-assessing officer (AO) filed the instant appeal against the order of the Adjudicating Authority (AA) revoking the provisional attachment order (PAO). The assessee was a shell company. During the assessment proceedings, it was found that the assessee received share capital at a premium. Subsequently, the assessee purchased an immovable property from such share premium. The assessee reported the acquisition of such property in its income tax return.

The AO provisionally attached such property as the source of share capital, which was not genuine. Further, the matter was referred to the AA, who revoked the attachment order. Aggrieved AO filed the instant appeal before the Tribunal.

ITAT Held

The Tribunal held that the assessee was incorporated on 30.11.2010. Within a year of its incorporation, the assessee received share capital at a premium. The assessee purchased an immovable property from such share premium. The following year, the assessee reported the acquisition of such property in its income tax return.

It was clear that the assessee was a shell company. It was never involved in any business activity. The entire share capital was received from a single source at a premium. Further, it had no income-generating activities and thus possessed all the principal characteristics associated with a shell company.

The fact that wrong property was mentioned in the Show Cause Notice (on account of misdeclaration in the ITR for the year 2019-20), the attachment proceedings cannot be set aside qua the share premium of Rs. 1,96,80,000/- transformed in the form of any investment/loan, as the infusion of bogus share premium was specifically mentioned in SCN which was utilized for purchasing the property.

Accordingly, the AO was permitted to attach the benami property of the assessee to the extent of Rs. 1,96,80,000 infused in the form of the bogus share premium obtained at the rate of Rs. 240 per share, without any basis.

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