Corporate Amicus, April 2026

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Article

No Data, No Deal? The DPDP Act’s impact on Indian M&A

By Srabonee Roy, Vishakha Singh, Atrijo Banerjee and Mathanki N.

The Digital Personal Data Protection Act, 2023 (‘DPDP Act’) has altered how mergers and acquisitions are evaluated in India. The article in this issue of Corporate Amicus tries to break down a few aspects of the DPDP Act which need to be considered and accounted for during the lifecycle of an M&A transaction.

It thus explains how the DPDP Act is reshaping M&A by turning personal data handling into a key deal driver affecting risk, valuation, and even feasibility. According to the authors, because M&A deals routinely involve sharing customer, employee, and vendor data from diligence through closing, non-compliant sharing (e.g., without valid consent or anonymisation) can create significant exposure. Further, they note that since the DPDP Act’s rights-based framework increases obligations on ‘data fiduciaries’ and requires clear lawful purpose, specific and valid consent, limited retention, breach notification and contracts with data processors, parties should tighten diligence controls, have log access, minimise and anonymise data, have necessary consents, and ensure post-deal data governance.

Notifications and Circulars 

• Reporting under Foreign Exchange Management (Guarantees) Regulations, 2026 – Directions issued
• Limits notified for investment in debt and sale of credit default swaps by Foreign Portfolio Investors (FPIs)
• No penal action for non-compliance with Minimum Public Shareholding (MPS) requirements if due date is from 1 April 2026 till 30 September 2026
• Mechanism for lock-in of pledged shares under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 notified
• Social Stock Exchange framework – Requirements for registration of Not-for-Profit Organization and minimum subscription for issuance of Zero Coupon Zero Principal Instruments revised
• Digital Payments – E-mandate Framework, 2026 notified
• Framework for net settlement of funds for transactions done by Foreign Portfolio Investors (FPIs) in cash market notified
• RBI (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026 notified
• RBI (Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026 notified
• RBI Second Amendment Directions on Concentration Risk Management, 2026 notified
• RBI (Commercial Banks – Resolution of Stressed Assets) Amendment Directions, 2026 notified
• RBI (Commercial Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026 notified
• RBI (Commercial Banks – Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026 notified
• RBI (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026 notified
• RBI (Commercial Banks – Credit Risk Management) Second Amendment Directions, 2026 notified
   

Ratio decidendi 

• Corporate guarantees giving rise to liability for repayment of money borrowed constitute ‘financial debt’ – Technical lapses are immaterial – Supreme Court
• Arbitration clause using the word ‘can’ does not constitute a mandatory or binding Arbitration Agreement – Supreme Court
• Letter of Intent that is merely preparatory in nature and makes only a general reference to tender documents does not incorporate an arbitration clause – Supreme Court
• An unsuccessful party in arbitration is entitled to seek interim relief under Arbitration Section 9 at the post‑award stage – Supreme Court
• Admission of claim by Resolution Professional does not amount to acknowledgement of debt – Supreme Court
   

News Nuggets 

• IFSCA amends KMP framework for fund management entities
• RBI projects GDP growth of 7.6% for FY26, signals moderation ahead
• Startup India Fund of Funds 2.0 – Operational guidelines notified
• DGFT Norms Committees strengthened to fast‑track Advance Authorisation approvals
• CCI approves Indus Infra Trust’s acquisition of KNR Highway SPVs
• CCI approves Citrus Investment’s acquisition of additional stake in HCM and sole control over HCJI
• RBI revokes Banking Licence of Paytm Payments Bank