Corporate Amicus, October 2026

Click the 'View PDF' option above to read the full Amicus.

Article

Manager’s/Sponsor’s obligation to maintain minimum continuing interest – Obstacles to compliance with SEBI’s requirements

By Vinod Joseph, Paridhi Jain, Akhil Ganatra and Zaynali Badami

In the months of July, August and October, SEBI passed a few settlement orders with respect to alleged violations of SEBI regulations relating to the obligation of the Manager or the Sponsor of the AIF. The article reviews one of such settlement orders passed by SEBI and discusses the various obstacles faced by AIFs and their Managers and Sponsors in complying with SEBI’s regulations for a minimum commitment by the Sponsor or the Manager of an AIF.

Notifications and Circulars

• SEBI introduces Credit Risk-o-Meter as an Additional Disclosure Mechanism for debt securities

• SEBI relaxes mandatory merchant banker appointment requirement for certain private debt placements

• SEBI increases ISIN limits for privately placed debt securities

• SEBI relaxes call recording requirements for research analysts dealing with institutional investors

• RBI introduces Credit Valuation Adjustment Framework for commercial banks

• RBI revises Counterparty Credit Risk Capital Framework for commercial banks

• RBI revises Capital Adequacy Norms for clearing member banks and CVA loss adjustments

• RBI introduces foreign exchange risk reserve requirement for INR derivative contracts

• RBI revises leverage ratio framework for commercial banks

• RBI revises operational risk capital requirements for commercial banks

Ratio Decidendi

• Once a Resolution Plan is approved by Committee of Creditors, withdrawal, merely because the Corporate Debtor’s financial position subsequently improves, is no more an option – Supreme Court

• Debenture Holder and Debenture Trustee are ‘Related Party’ to the Corporate Debtor and hence are not allowed to participate in the Committee of Creditors – Supreme Court

• Construction of the Arbitration Clause containing multiple geographic references, to be determined from Parties’ manifest intention reflected in the contract as a whole – Supreme Court

• Proof of disproportionate assets shifts evidentiary burden to the accused, as the prosecution need not negate every hypothetical source subsequently claimed by the accused – Supreme Court

• Failure to challenge Wakf notification within limitation bars subsequent dispute as to Wakf status – Supreme Court

News Nuggets

• SEBI proposes overhaul of SME IPO Framework, reduces minimum application size to INR 1 lakh

• SEBI extends Debenture Trustees’ compliance deadline to April 2027

• Tata Motors’ takeover bid for Iveco clears 80% acceptance threshold

• TVS Motor approves demerger of consumer finance business into Harita ARC to unlock shareholder value

• SEBI explores domestic AI model for securities market, reviews FPI compliance and SME listing framework