Understanding Key Amendments - November 2025
- Aitijyamoy Mukherjee
- Nov 12
- 17 min read
Securities Exchange Board of India
SEBI rolls out “Validated UPI Handles” and “SEBI Check” for secure investor payments
Press Release No. 64/2025, dated October 01, 2025
Securities Exchange Board of India (SEBI) has launched two new investor protection initiatives, Validated UPI Handles (“@valid”) and SEBI Check to enhance payment security and prevent fraud in the securities market. These measures, announced through Press Release No. 64/2025 and linked to Circular No. SEBI/HO/DEPA-II/DEPA-II_SRG/P/CIR/2025/86 dated June 11, 2025, are now live and available for use by investors. The rollout aims to create a secure and verified payment ecosystem for transactions with SEBI-registered intermediaries.
Key Features
Validated UPI Handles (@valid):
SEBI-registered investor-facing intermediaries will now use UPI IDs ending with “@valid” handle, combined with the name of the self-certified syndicate bank, issued by NPCI, along with category-specific suffixes like .brk (brokers) and .mf (mutual funds) for easy identification.
Payments made through “@valid” handles will display a green triangle with a thumbs-up icon, confirming the transaction’s authenticity.
A distinctive QR code featuring the same “thumbs-up” symbol will be used for verified, error-free transactions. At the same time its absence serves as a caution to investors that they are making payments to unauthorised entities.
Major brokers covering over 90% of investors and all mutual funds have already adopted the new handle.
SEBI Check Tool:
This new verification feature allows investors to confirm the authenticity of UPI IDs and bank account details of SEBI-registered intermediaries.
Verification can be done using the intermediary’s bank account number and IFSC code or @valid UPI ID through SEBI Check or the SEBI Saarthi app.
These initiatives significantly strengthen investor security by ensuring payments are made only to verified entities, reducing fraud risks and increasing transaction transparency. The “@valid” handle and “SEBI Check” together mark a major step in building digital trust, promoting safer payment practices, and reinforcing SEBI’s ongoing commitment to investor protection and market integrity.
Relaxation in Minimum Information Requirements for Approval of Related Party Transactions
Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/135 dated October 13, 2025
SEBI has revised the requirements relating to the information that listed entities must provide to the Audit Committee and shareholders for approving Related Party Transactions (RPTs). The changes were introduced through Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/135 dated October 13, 2025, and modify the provisions under Section III-B of the Master Circular (November 11, 2024) mandate listed entities to follow the “RPT Industry Standards” for Audit Committee and shareholder approvals of Related Party Transactions and Para 7 of the SEBI Circular dated June 26, 2025, after SEBI Board in its 211th meeting on September 12, 2025 has approved the proposal for relaxation in minimum information to be provided to the Audit Committee and shareholders for the approval of RPTs. The move aims to ease compliance and facilitate smoother business operations while maintaining adequate transparency in RPT disclosures.
Key Changes
Threshold-based relaxation:
If an RPT, either individually or together with previous transactions during a financial year (including those ratified), does not exceed 1% of the listed entity’s annual consolidated turnover or INR10 crore (whichever is lower), the entity needs to provide only the “Minimum Information” specified in Annexure-13A for Audit Committee and shareholder approvals.
Further, transactions not exceeding INR1 crore are exempt from these requirements altogether.
Revised disclosures to Audit Committee:
Listed entities must furnish information as per the Industry Standards on Minimum Information when presenting RPT proposals to the Audit Committee.
For smaller transactions (as per thresholds above), only details mentioned in Annexure-13A are required.
Revised disclosures to shareholders:
Notices sent to shareholders for RPT approvals must include the prescribed Industry Standard information as part of the explanatory statement.
The same threshold-based relaxations apply here as well.
Clarification on existing exemptions:
The earlier INR1 crore exemption threshold mentioned in Para 3(c) of the RPT Industry Standards remains unchanged.
This circular brings a more practical and proportionate compliance framework for RPT disclosures. By linking the disclosure requirements to transaction size, SEBI has streamlined reporting, reduced the burden on listed entities, and maintained investor protection through continued transparency in significant related party dealings. The circular is effective immediately and reinforces SEBI’s intent to align regulatory compliance with ease of doing business.
SEBI Allows Transfer of Portfolio Management Services Business Between Portfolio Managers
Circular No. SEBI/HO/IMD/RAC/CIR/P/2025/0000000138, dated October 24, 2025
The Securities and Exchange Board of India (SEBI), has introduced a framework to facilitate the transfer of Portfolio Management Services (PMS) businesses between registered Portfolio Managers. Issued under Section 11(1) of the SEBI Act, 1992 and Regulation 43 of the SEBI (Portfolio Managers) Regulations, 2020, the circular aims to simplify operational transitions, ensure seamless client servicing, and provide greater flexibility for PMS entities undergoing restructuring, mergers, or internal realignment.
Key Provisions
Prior SEBI Approval: Transfers can only be made after obtaining SEBI’s prior approval.
Within the Same Group:
PMS businesses may transfer specific Investment Approaches or the entire portfolio management activity within group entities.
If the entire business is transferred, the transferor must surrender its PMS registration within 45 working days of completion.
Partial transfers allow continued operations under the existing registration.
Between Unrelated Managers:
Transfers between unrelated entities require a joint application to SEBI.
Only full business transfers are permitted, and the transferee assumes all rights, liabilities, and obligations of the transferor.
The process must be completed within two months of SEBI approval, after which the transferor must surrender its PMS registration.
This circular is expected to bring greater regulatory clarity and operational efficiency in the PMS industry. It allows smoother business transitions during mergers or group reorganisations, protecting client interests and ensuring accountability in business transfers. In the long run, the framework may encourage consolidation among smaller PMS players and create a more structured environment for acquisitions and succession planning within the portfolio management space.
SEBI Issues Consultation Paper to Align LODR Provisions on Transfer of Unclaimed Amounts with the Companies Act
SEBI has released a Consultation Paper (October 24, 2025) through the Department of Debt and Hybrid Securities, seeking public comments on a proposed clarification to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). The proposal focuses on clarifying the timeline for the transfer of unclaimed amounts by entities having listed non-convertible securities to the Investor Education and Protection Fund (IEPF) under the Companies Act, 2013, or the Investor Protection and Education Fund (IPEF) established by SEBI. Comments on the paper may be submitted until November 14, 2025.
Key Proposal
Background:
Under Regulation 61A of the LODR Regulations, any unclaimed amount for 30 days must first be transferred to an escrow account within 7 days.
If the amount transferred to the escrow account remains unclaimed for seven years, it must be further transferred to the IEPF/IPEF, depending on the applicable framework.
Relevant Legal Framework:
SEBI’s LODR framework currently aligns with this requirement but seeks further Section 125(2) of the Companies Act, 2013 requires matured debentures and related interest accrued on the amounts referred to in clauses (h) to (j), that remain unclaimed or unpaid for seven years to be credited to the IEPF.
Similarly, Rule 3(3) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016 provides that all such unclaimed amounts be credited to the IEPF.
Clarity on timelines and procedural consistency for listed entities dealing in non-convertible securities.
Regulation 61A of the LODR requires listed entities to transfer unclaimed interest, dividend, or redemption amounts unclaimed for 30 days into an escrow account within seven days as well. Sums remaining unclaimed for seven years must then be moved to the IEPF or IPEF, with no interest payable.
The current Regulation 61A of the LODR conflicts with Section 125(2) of the Companies Act, 2013, and Rule 3(3) of the IEPF Rules regarding transfer of unclaimed interest amounts. To resolve this, SEBI proposes aligning Regulation 61A with the Companies Act so that unclaimed amounts are transferred directly to the IEPF (or IPEF) in one step upon maturity, instead of first moving them to an escrow account. This proposal aims to streamline compliance requirements and bring uniformity in how listed entities handle unclaimed amounts related to debt and hybrid instruments. By clarifying timelines and processes for transfer to IEPF/IPEF, SEBI seeks to promote regulatory consistency, reduce ambiguity, and enhance ease of doing business for issuers of listed non-convertible securities.
Review of Block Deal Framework
Circular No.: SEBI/HO/MRD/POD-III/CIR/P/2025/134 dated October 08, 2025
SEBI has revised the Block Deal Framework through Circular No. SEBI/HO/MRD/POD-III/CIR/P/2025/134 dated October 8, 2025, modifying earlier provisions under Chapter 1 of the Master Circular (December 30, 2024) and Paragraph 3.5 of the SEBI Circular dated December 10, 2024 on Enhancement in the scope of optional T+0 rolling settlement cycle in addition to the existing T+1 settlement cycle in Equity Cash Markets. The updated framework follows recommendations from the Working Group, the Secondary Market Advisory Committee (SMAC), and public feedback. The aim is to refine trading practices for large transactions while ensuring transparency, fairness, and efficient execution.
Key Changes
Block Deal Windows:
Morning Window: 8:45 AM to 9:00 AM, with the previous day’s closing price as the reference price.
Afternoon Window: 2:05 PM to 2:20 PM, with the Volume Weighted Average Price (VWAP) of trades between 1:45 PM and 2:00 PM as the reference price.
Exchanges will calculate and announce the VWAP between 2:00 PM and 2:05 PM.
Price Range:
Orders in both windows must be placed within ±3% of the respective reference price, subject to standard surveillance measures and price bands.
Order Size:
The minimum order value for block deals is INR25 crore.
Every trade executed in the block deal window must result in actual delivery; squaring off or reversal of positions is not permitted.
Transparency:
The Stock exchanges must publish details such as the stock name, client name, trade quantity of shares bought or sold, and trade price after-market hours on the same day.
Applicability:
The revised framework also applies to the block deal window under the optional T+0 settlement cycle.
Implementation:
The circular takes effect 60 days from its issuance.
All Market Infrastructure Institutions (MIIs) stock exchanges, clearing corporations, and depositories must update their systems, rules, and regulations and inform market participants accordingly.
The updated Block Deal Framework enhances market transparency, efficiency, and investor protection while ensuring smooth execution of large trades. By refining window timings, pricing references, and disclosure norms, SEBI aims to strengthen market integrity and streamline large-value equity transactions.
Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2025
Circular No. SEBI/LAD-NRO/GN/2025/269 dated October 27, 2025.
A notification issued under Section 30 of the SEBI Act, 1992, effective from the date of its publication in the Official Gazette, introduces key amendments aimed at strengthening the regulatory framework governing Debenture Trustees (DTs). These amendments seek to clarify the scope of permissible activities, streamline operational responsibilities, and reinforce the rights and obligations of DTs. Collectively, the changes are intended to enhance transparency, accountability, and investor protection within the debt securities market.
Key Highlights:
The recent SEBI notification under Section 30 of the SEBI Act, 1992 introduces several key updates to strengthen the governance of Debenture Trustees.
Definition Update: A new clause (aaa) defines “Board” as the Securities and Exchange Board of India (SEBI) established under Section 3(1) of the SEBI Act, 1992.
New Regulation 9C – Permitted Activities: DTs can now undertake additional activities, including those regulated by other financial sector regulators (like RBI, IRDAI, PFRDA, IFSCA, IBBI, or MCA) and certain fee-based, non-fund-based services, provided these are carried out on an arm’s length basis through separate business units.
Conditions: DTs regulated by RBI must conduct trustee activities via separate business units. Existing DTs have six months (extendable by SEBI) to align with this requirement. Their net worth must remain protected from risks arising from new activities.
Substitution of Regulation 14 – Trust Deeds: DTs must now accept trust deeds aligned with Section 71 of the Companies Act, 2013, Form SH.12, and SEBI’s prescribed format under the 2021 NCS Regulations. Deviations are allowed only with proper disclosure and justification.
Omission of Regulation 15(5): The earlier sub-regulation (5) has been removed.
New Regulation 15A – Rights of DTs: DTs are now explicitly empowered to inspect issuer records, seek information/documents from issuers and intermediaries, and use the Recovery Expense Fund (with debenture holders’ consent) as per SEBI’s norms.
These amendments aim to provide greater operational flexibility to debenture trustees while reinforcing investor protection. They ensure a clear segregation of activities to maintain accountability and safeguard financial integrity. Additionally, the changes are designed to enhance oversight, promote transparency, and strengthen overall governance within the debenture market.
Reserve Bank of India
Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025
Notification No. RBI/2025-26/95 DOR.MCS.REC.59/01.01.003/2025-26, dated October 28, 2025
Effective from: November 1, 2025
Issued by: Reserve Bank of India under Section 35A of the Banking Regulation Act, 1949
Applicable to: All banks, including scheduled commercial banks, RRBs, and cooperative banks
The Reserve Bank of India issued the Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks Directions, 2025 on October 28, 2025 (RBI/2025-26/95), effective November 1, 2025. These directions align existing banking practices with the Banking Laws (Amendment) Act, 2025 which has amended the Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949 (the Act) and the Banking Companies (Nomination) Rules, 2025, revising the framework for nomination across all banks which along with amended provisions of the Act shall come into force from November 1, 2025. The objective is to streamline claim settlements after a depositor’s death and minimise inconvenience to their family members.
Key Provisions
Mandatory Offering of Nomination:Banks must offer the nomination facility in accordance with the provisions of sections 45ZA, 45ZB and 45ZG of the Act (read with section 56 of the Act when applied to cooperative banks) and the Rules for all deposit accounts, lockers, and articles in safe custody, clearly explaining its benefits to customers.
Customer’s Right to Opt-Out:Account opening cannot be denied if a customer declines to nominate. A written declaration or record of refusal must be maintained. Banks must explain the benefits of the nomination facility to prospective customers, highlighting its role in simplifying claim settlement and ensuring smooth fund transfer after the depositor’s death. If a customer declines nomination, the bank must still open the account after obtaining a written declaration or noting the refusal in records. No customer can be denied or delayed account opening solely for refusing to make a nomination, provided all other eligibility criteria are fulfilled.
Registration and Acknowledgement:If a nominee dies before receiving the deposit, that specific nomination becomes void, and the bank must settle the claim as per RBI’s Settlement of Claims in respect of Deceased Customers of Banks Directions, 2025. Banks cannot treat payments made under nominations created under other laws as valid discharge under the Act. They must maintain systems to record, register, cancel, or vary nominations on customer request and properly acknowledge receipt of related forms. Banks must record, modify, or cancel nominations on request and issue written acknowledgements within three working days. Any rejection must be communicated with reasons.
Nominee Details in Account Records:The legend “Nomination Registered” and the nominee’s name must appear on passbooks, account statements, and term deposit receipts.
Awareness and Communication:Banks must promote awareness of the facility through customer materials and periodic campaigns.
Repeal of Earlier Circulars:Thirty-one earlier circulars (issued between 1986 and 2021) stand repealed from November 1, 2025.
The new guidelines enhance customer rights and accountability within the banking system by making nomination processes transparent, standardized, and customer-friendly. Banks are now obligated to actively offer and promote the nomination facility, ensuring customers are well-informed of its benefits. At the same time, customers retain full autonomy to opt out without affecting account opening strengthening consumer choice and trust. Mandatory acknowledgements, timely updates, and clear communication requirements improve procedural transparency and record accuracy. By repealing older circulars, the Reserve Bank ensures a unified, modern regulatory framework that simplifies compliance and minimizes ambiguity for both banks and customers.
Draft Foreign Exchange Management (Borrowing and Lending) (Fourth Amendment) Regulations, 2025
Notification No: FEMA 3(R)(xxx)/2025-RB dated October 3, 2025
The Reserve Bank of India (RBI) issued the Foreign Exchange Management (Borrowing and Lending) (Fourth Amendment) Regulations, 2025 through Notification No. FEMA 3(R)(xxx)/2025-RB, dated October 2025. These amendments update the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, with a focus on redefining key terms, clarifying borrowing restrictions, and overhauling the External Commercial Borrowing (ECB) Framework to align with evolving market conditions and global reference rates.
Key Provisions
Revised Definitions (Regulation 2):The amendment substitutes Regulation 2 to comprehensively define key terms such as Authorised Dealer, benchmark rate, cost of borrowing, external commercial borrowing (ECB), external commercial lending (ECL), FCNR (B) account, financial sector regulator, foreign branches / foreign subsidiaries of banks in India,infrastructure sector, Indian entity, foreign currency convertible bonds (FCCBs), foreign currency exchangeable bonds (FCEBs), housing finance Institution, NRE Account, NRO Account, National Housing Bank, net worth, NRI, OCI, RFC, relative, and trade credit (TC).
It also introduces clarity on “arm’s length basis”, “designated AD Category I bank”, and “group entity”, aligning with other FEMA and Companies Act provisions.
New Regulation 3A – Prohibited End-Uses:
Funds borrowed under these regulations cannot be used for:
Chit funds, Nidhi companies, or agricultural/plantation activities (except where FDI is allowed)
Real estate or farmhouse construction (except for FDI-permitted activities and purchase/long-term leasing of industrial projects)
Trading in Transferable Development Rights (TDR)
On-lending (except by regulated lenders or specific group companies)
Investment in listed/unlisted securities, except for permitted overseas investments, mergers/acquisitions, or primary market instruments for on-lending
Overhauled Schedule I – ECB Framework:
Eligible Borrowers: Any person resident in India (other than individuals) incorporated, established or registered under a Central Act or State Act may raise ECB, including those under restructuring or insolvency, subject to disclosure and regulatory oversight. An eligible borrower facing any ongoing investigation, adjudication, or appeal by law enforcement agencies for contravention under the Act may still raise External Commercial Borrowings (ECB), subject to the final outcome of such proceedings. The borrower must disclose details of the pending case to the designated AD Category I bank, which in turn must inform the concerned agencies about the borrowing.
Recognised Lenders: Persons resident outside India or overseas/IFSC branches of RBI-regulated entities.
Currency of Borrowing: Eligible borrowers can raise ECBs in FCY or INR and may convert between currencies. Currency conversion must use the prevailing exchange rate or a rate that lowers the liability.
Form of Borrowing: Eligible borrowers can raise ECBs in any form of commercial borrowing with interest and principal repayment, including FCCBs and FCEBs.
Preference shares or debentures issued to non-residents that are not fully and mandatorily convertible are also treated as ECB. Trade credit upto 3 years, export advances, and investments under FEMA 2019 regulations (debt instruments or convertible notes) are not treated as ECB.
Borrowing Limits: ECBs up to the higher of USD 1 billion or 300% of net worth; no limit for entities regulated by financial sector regulators.
Maturity: Minimum average maturity period (MAMP) of three years, with certain exceptions for manufacturing sectors. Eligible borrowers in the manufacturing sector can raise ECBs with an average maturity period (MAMP) of 1t o 3 years, capped at USD 50 million outstanding. Call and put options cannot be exercised before completing the MAMP. MAMP requirements do not apply for ECB conversion to non-debt instruments, repayment using non-debt proceeds, debt waiver by the lender, or lender/borrower closure, merger, acquisition, resolution, or liquidation.
Cost of Borrowing: To be market-aligned and monitored by designated AD banks; costs cannot be paid from ECB proceeds.
Drawdown & Use of Funds: Borrowers must obtain a Loan Registration Number (LRN) before drawdown; proceeds to be repatriated and held in INR or FCY accounts as per end-use.
Security & Guarantees: ECBs may be secured by movable/immovable or financial assets; guarantees allowed under prescribed conditions.
Conversion & Refinancing: Permitted into non-debt instruments or refinanced without violating maturity or pricing norms.
Reporting: Mandatory filings in Form ECB, Form ECB-2, and Revised Form ECB, within 30 days of drawdown or changes.
The amendment enhances regulatory clarity by unifying definitions and end-use rules under FEMA, reducing ambiguity for borrowers and banks. It streamlines reporting and refinancing through a simplified ECB framework, making cross-border borrowing smoother. By aligning benchmark rates with market standards, it promotes transparency and risk-based pricing, while stricter end-use controls and disclosure requirements strengthen compliance and oversight.
Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Seventh Amendment) Regulations, 2025
Notification No: FEMA 10(R)(7)/2025-RB, dated October 06, 2025
The amendment updates the rules for foreign currency accounts held by Indian residents, particularly exporters, to clarify permissible account locations and timelines for repatriation and utilization of funds. It incorporates provisions for accounts held in International Financial Services Centres (IFSCs).
Key Provisions:
IFSC Definition: The term “International Financial Services Centre (IFSC)” is now explicitly defined under the regulations.
Exporters’ Accounts: Exporters can open and maintain foreign currency accounts with banks outside India for realisation of full export value and advance remittances.
Fund Utilisation and Repatriation:
Funds in IFSC accounts must be repatriated or used within three months of receipt.
Funds in accounts outside IFSCs must be repatriated or used by the next month.
Compliance with existing FEMA export realisation and repatriation rules is required.
Clarification: Accounts permitted abroad can also be held in IFSCs.
The amendment provides greater clarity and flexibility for exporters in managing foreign currency inflows, standardizes timelines for fund repatriation, and formally recognizes IFSCs as eligible locations for such accounts, facilitating smoother cross-border transactions and compliance with FEMA requirements.
Insolvency and Bankruptcy Board of India
Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025
Notification No. IBBI/2025-26/GN/REG129 dated 14th October 2025
The amendment modifies the 2016 Liquidation Process Regulations to streamline procedural provisions related to liquidation by sale as a going concern. These changes apply prospectively, meaning they affect cases where liquidation as a going concern has not yet begun.
Key Provisions:
Effective Date: Regulations come into force upon publication in the Official Gazette and apply to prospective cases only.
Changes to Regulation 31A: Sub-regulation (1), clause (f) has been removed.
Changes to Regulation 32:
Minor textual edits including insertion of “or” and replacement of semicolons with colons.
Clauses (e) and (f) are omitted.
Proviso reference updated from “(f)” to “(d)”.
Omission of Regulation 32A: This regulation has been completely removed from the principal regulations.
The amendments simplify and clarify the liquidation process, particularly for sales as a going concern, by removing redundant or outdated clauses. This reduces procedural ambiguity for resolution professionals and ensures smoother implementation in applicable cases.
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Sixth Amendment) Regulations, 2025.
Notification No. IBBI/2025-26/GN/REG130 dated 14th October 2025
The amendment updates the 2016 Insolvency Resolution Process Regulations for corporate persons by removing and modifying certain provisions to streamline reporting and procedural requirements.
Key Provisions:
Short Title and Commencement: The regulations take effect from the date of their publication in the Official Gazette.
Omission of Regulation 39C: This regulation has been removed entirely.
Amendments to Regulation 39D:
Clause (a) is modified by inserting “and” after “Companies Act, 2013”.
Clause (b) is omitted.
Changes to Form H: In paragraph 15, point (b) is omitted.
The amendments simplify compliance and reporting obligations under the insolvency resolution process for corporate entities. By removing certain clauses and modifying others, the changes reduce redundancy and provide clearer guidance for resolution professionals, facilitating a smoother and more efficient resolution process.
Labour and Employment
Telangana Government Revises Minimum Wages for Shops and Commercial Establishments Effective October 2025
The Telangana Government has issued a notification updating the minimum wages for Shops and Commercial Establishments in the State, effective from 1 October 2025 to 31 March 2026.
Revised Wage Structure:
Minimum wages are now determined based on both category and zone (Zone-I / Zone-II). For instance, under the “Shops” category:
A Manager, Sales Manager, or Computer Programmer in Zone-I will receive a basic wage of INR5,557 plus VDA of INR9,062.4, amounting to INR14,619.4 in total.
A helper or attender in Zone-II will receive a basic wage of INR3,370 plus VDA of INR9,062.4, totaling INR12,432.4.
Similar structured revisions apply to the “Commercial Establishments” category.
Key Points:
The revision is based on the latest Consumer Price Index for Industrial Workers (CPI-IW) applicable in Telangana.
Employers are required to implement the updated minimum wage rates from 1 October 2025.
The changes apply to all establishments in the State governed by the Minimum Wages Act, 1948.
The revision of minimum wages in Telangana has several implications. Employers will need to update payroll systems and ensure timely payment of the revised wages from 1 October 2025 to stay compliant with the Minimum Wages Act, which may lead to higher labour costs, particularly in zones with increased rates. The clear categorisation by zone and job role provides uniform benchmarks, reducing ambiguity and potential disputes. For employees, the revision improves earnings, helping offset inflation and enhancing financial security. At the same time, labour authorities will likely increase monitoring and enforcement to ensure all establishments adhere to the new rates. Overall, the changes strengthen worker protection while requiring employers to adjust operational and budgetary plans accordingly.
Hon’ble Supreme Court flagged the definition of “dependent” under Section 2(1)(d)(iii)(d) of the Employees’ Compensation Act, 1923
In The New India Assurance Company Ltd. v. Kogga & Ors. (2025), the Supreme Court dismissed the appeal but highlighted the outdated definition of ‘dependent’ under the Employees’ Compensation Act, 1923. Recognising that certain provisions, such as including a “widowed sister if a minor,” are no longer practically relevant, the Court referred the matter to the Law Commission of India for potential amendments. The judgment ensures that amounts deposited in the Karnataka High Court can be withdrawn by the respondents or their legal heirs.
Key Points:
Appeal dismissed, leaving the substantive legal question open.
Section 2(1)(d)(iii)(d) defines ‘dependent’ as a minor brother, an unmarried sister, or a widowed sister if a minor.
Court noted the provision is outdated, especially post-Hindu Marriage Act, 1955.
Matter referred to the Law Commission for reviewing and amending the definition.
Respondents/legal heirs can withdraw deposited amounts with accrued interest.
The decision signals the need to modernise the Employees’ Compensation Act to reflect contemporary social realities. Clarifying the definition of ‘dependent’ will reduce ambiguity in compensation claims and provide clearer guidance for courts, insurers, and employers. It also ensures that claimants or their heirs have prompt access to deposited funds, improving administrative efficiency and fairness in the compensation process.