Corporate Law Update No. 2

Click the 'View PDF' option above to read the full Update

The Reserve Bank of India, post receiving public feedback, has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 on 13 January 2026, followed by the issuance of the Directions on Export and Import of Goods and Services on 16 January 2026 (collectively the “2026 Update”).

The 2026 Update shall come into force from 1 October 2026.

Key changes introduced under the 2026 Update are:

• Introduction of new reporting obligation for export of services;

• Consolidation of export declaration of goods, services and software into a unified form EDF;

• Linking of import timelines to the contractual terms;

• Additional timeline for settlement of export payments in INR;

• Reduction of export receivables (write-off) possible through AD Banks;

• Liberalised guidelines for Merchanting Trade Transactions (MTT);

• Simplification of the conditions pertaining to set-off and third party payments; and

• Omission of provisions related to caution listing of traders.