The months of August and September 2025 witnessed a series of significant regulatory developments across company law, accounting standards, and securities regulation, reflecting the government’s ongoing efforts to simplify compliance, enhance transparency, and align Indian standards with global practices.
The Ministry of Corporate Affairs (MCA) introduced the Companies (Indian Accounting Standards) (Ind AS) 2nd Amendment Rules, 2025, bringing key updates to Ind AS 1, 7, 12, and 107, focusing on liability classification, supplier finance disclosures, and international tax reforms. The scope of fast-track mergers under Section 233 was also expanded through amendments to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, promoting faster restructuring among eligible entities.
Additionally, the MCA permitted AGMs and EGMs through virtual modes (VC/OAVM) until further orders—enhancing flexibility for corporate governance without extending statutory deadlines.
On the securities front, SEBI introduced multiple amendments to the LODR and Delisting Regulations, simplifying Related Party Transaction (RPT) norms, streamlining disclosures for Social Enterprises and NPOs, and improving ease of doing business for listed entities. Updates to the Social Stock Exchange framework further strengthen accountability and impact reporting standards.
The ICAI also released several critical publications and guidance documents, including FAQs on the Guidance Note for Non-Corporate Entities, the Revised Technical Guide on CSR Expenditure, and the Revised Guidance Note on Tax Audit under Section 44AB. Notably, the Audit Quality Maturity Model (AQMM v2.0) has been made mandatory in a phased manner from April 2026 onwards, ensuring enhanced audit quality across firms.
Overall, these reforms signal a strong regulatory focus on transparency, governance, and audit excellence, positioning India’s corporate and financial reporting ecosystem for greater global alignment and investor confidence.
