Regulatory proportionality for NBFCs: systemically significant firms face tighter supervision while others retain flexibility.
The Reserve Bank proposes a calibrated, proportionate NBFC regulatory framework that intensifies supervision of entities posing systemic externalities while preserving regulatory lightness for smaller firms. Key measures include enhanced liquidity risk governance with a tailored Liquidity Coverage Ratio for large NBFCs, prudential oversight of government owned NBFCs, fintech specific rules such as P2P and the Account Aggregator framework, strengthened disclosure requirements for Core Investment Companies, and phased harmonisation of Housing Finance Companies into the NBFC perimeter. Complementary reforms target promoter due diligence, corporate governance, consumer protection and activity based regulation in microfinance.

Investment liberalisation and asset monetisation policies aim to strengthen market access and investor facilitation in India.
The Prime Minister outlined policy measures to enhance investor attractiveness including liberalisation of the FDI regime, a favourable tax regime for sovereign and pension funds, bond market development, incentives for manufacturing sectors, operationalisation of REITs and InvITs for asset monetisation, proactive monetisation of public assets, and an Empowered Group of Secretaries to provide investor hand holding.

Strike off of inactive companies enforces compliance by removing entities identified through non filing and red flag indicators.
A government Special Drive used the Companies Act removal framework to identify and strike off companies principally for non-filing of financial statements for two consecutive years, completing statutory notice and removal steps; a Special Task Force recommended specific red flag indicators to identify entities described as shell companies-entities lacking active operations or significant assets and potentially used for illicit purposes.

Public private partnership amplifies grassroots innovation through media curation, event support and regular publication to boost student recognition.
A public private collaboration mandates a media partner to curate, publish and promote monthly content on student innovations, ed tech developments, startup stories and top innovations from lab marathons, and to support government innovation mission events and competitions through its network to increase awareness and create a recognition platform for student innovators.

Money laundering investigations uncover hawala networks and nominee accounts, prompting forensic financial probes and continued inquiries.
Income-tax authorities conducted searches at premises linked to Chinese nationals, Indian associates, and bank personnel after information of systematic money laundering and hawala networks. The searches revealed numerous bank accounts in nominee entities, extensive credit inflows, documents suggesting cross-border hawala transfers in foreign currency, involvement of chartered accountants and bank employees in facilitating transfers, and alleged fraudulent advances from shell entities to related corporate concerns. Seized materials have been retained for forensic analysis and further investigation is under way.

Auditor reporting obligations under revamped CARO require enhanced disclosures and due diligence to improve corporate transparency.
The Companies (Auditor's Report) Order, 2020 (CARO, 2020) revises auditor reporting obligations for eligible companies for financial years commencing on or after 1 April 2019, retaining previous eligibility while adding and redrafting clauses to require detailed auditor commentary. Auditors must report on immovable property title-deeds, Benami proceedings, inventory discrepancies, working-capital security reconciliations, investments and related-party loans, defaults on borrowings, going-concern assessments, cash losses, outgoing auditors' objections, wilful defaulter status, diversion of term loans, frauds, whistle-blower complaints, unregistered NBFC/HFC activities, and subsidiary auditors' qualifications.

Prior permission for investigations and mandatory ABBFF review for large-value frauds before enquiries proceed.
Prior permission is now required before initiating criminal investigation against a public servant under the Prevention of Corruption Act, and suspected large-value frauds involving public servants must undergo an initial mandatory examination by the Advisory Board for Banking and Financial Frauds before any enquiry or investigation proceeds. Additionally, personal liability of public sector bank chief executives for compliance timelines has been removed, with boards empowered to set compliance mechanisms and senior officer committees mandated to expedite internal disciplinary and vigilance cases.