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Corporations must brace for heightened regulatory scrutiny in 2025 with various regulators preparing to enforce stricter oversight and actions.
Corporations must brace for heightened regulatory scrutiny in 2025 with various regulators preparing to enforce stricter oversight and actions.
The Securities and Exchange Board of India (Sebi), Competition Commission of India (CCI), Central Consumer Protection Authority (CCPA), and tax authorities are expected to tighten their stance, forcing businesses to enhance compliance, streamline processes, and adapt to evolving governance standards.
The Securities and Exchange Board of India (Sebi), Competition Commission of India (CCI), Central Consumer Protection Authority (CCPA), and tax authorities are expected to tighten their stance, forcing businesses to enhance compliance, streamline processes, and adapt to evolving governance standards.
Transparency, sustainability, and accountability will remain key priorities in the coming year, top legal experts told Mint.
“The increase in the volume and complexity of transactions, coupled with India’s integration into global markets, has kept regulators busy," said Alok Sonkar, partner at law firm Cyril Amarchand Mangaldas. “Regulatory scrutiny is strict, focusing on public policy, investor protection, and long-term market impacts. However, challenges persist around compliance costs, misalignment with global norms, and overlapping frameworks."
Akhil Chowdary Unnam, partner at Unnam Law, added: “In 2025, corporations and investors should expect greater emphasis on sustainability, technology, and financial transparency. Corporations must invest in robust compliance mechanisms, while stricter regulations on cryptocurrency, artificial intelligence, and data mining markets are inevitable as these sectors grow."
As for investors, Sameena Jahangir, partner at Kochhar & Co., emphasized that they “should diversify portfolios and closely monitor regulatory developments, especially in technology-driven sectors."
The markets and Sebi
In 2024, Sebi led significant changes, including enforcing rigorous ESG (environmental, social, and governance) guidelines, introducing T+0 settlements for select stocks, and revamping disclosure rules to include objective criteria for material events.
Sebi also streamlined processes for initial public offerings of shares by mandating quarterly results publication within 21 days of listing to ensure timely disclosures and stabilize market conditions. It took proactive steps to protect retail investors by cracking down on unregistered bond platforms, prohibiting foreign portfolio investors (FPIs) from issuing offshore derivative instruments (ODI) and enforcing detailed ownership disclosures for ODI subscribers.
“Regulators have raised the governance bar with stricter due diligence for AIFs and performance evaluations for market infrastructure institutions, ushering in greater transparency," said Kaushik Mukherjee, partner, IndusLaw.
CCI’s actions
India’s competition watchdog introduced the CCI (General) Regulations, 2024, simplifying filing procedures, strengthening confidentiality, and permitting external agencies to monitor merger orders.
CCI raised its thresholds for merger approvals, mandating transactions exceeding ₹2,000 crore or those with substantial Indian operations to seek its clearance, particularly in the digital market. Key enforcement actions included a ₹213-crore fine on Meta over WhatsApp’s privacy policy, and investigations into Flipkart, Amazon, Zomato, and Swiggy for anti-competitive practices. Additionally, CCI reduced the merger review timeline from 210 days to 150 days, expediting regulatory processes.
Tax authorities’ crackdown
Tax authorities took proactive measures in 2024, issuing significant compliance notices. Goods and services tax (GST) authorities demanded ₹803 crore from Zomato, while Volkswagen faced a $1.4 billion tax evasion notice.
Initiatives like the Direct Tax Vivad Se Vishwas scheme, revised compounding guidelines, and operationalization of the GST Appellate Tribunal (GSTAT) aimed to ease litigation burdens and enhance compliance.
“Businesses can anticipate heightened scrutiny, increased audits, and broader use of technology by tax authorities. This is likely to include a stronger focus on GST reconciliations, cross-border transactions, and sector-specific compliance in areas such as e-commerce, manufacturing, and automotive industries," said Sandeep Sehgal, partner-tax, AKM Global, a tax and consulting services firm.
CCPA’s investigations
India’s Central Consumer Protection Authority was highly active in 2024. It ordered an investigation into Ola Electric for unresolved consumer complaints despite the company claiming a 99% resolution rate.
The CCPA also introduced guidelines to combat misleading environmental claims, banning vague terms like “eco-friendly" or “sustainable" unless supported by reliable scientific evidence or third-party certifications.
“Transparency and compliance are critical," said Lalit Kumar, partner at JSA, a law firm. “Investor sentiments are severely affected when corporate governance norms are compromised."
Challenges and missed opportunities
Despite the progress, some experts believe Indian regulatory activity in 2024 had notable gaps.
According to Sameena Jahangir, partner at law firm Kochhar & Co., while Indian regulators adopted a stricter stance, their approach in several instances lacked flexibility.
Sebi’s crackdown on insider trading and fraudulent IPOs and the CCI’s investigations into global tech giants improved corporate transparency, offering long-term stability for investors.
However, key issues such as the Hindenburg-Adani controversy and inefficiencies in Debt Recovery Tribunals received limited attention. Jahangir also noted that the CCI imposed relatively small fines on e-commerce and tech companies while avoiding deeper scrutiny of major market players.
Away from regulators, the Insolvency and Bankruptcy Code, which is essential for corporate governance in India, has been the focus in 2024.
The Insolvency and Bankruptcy Code (IBC) in 2024 paved the way for major resolutions such as Jaypee Healthcare Ltd, Lanco Amarkantak Power Ltd, and Coastal Energen Pvt Ltd, resulting in significant recoveries for creditors.
With 51 businesses revived under IBC in the September quarter, 109 businesses struck deals in the first half of 2024-25. While this is slightly lower than the 130 resolutions approved in the same period of the fiscal year prior, a record 271 businesses received a fresh lease of life under the IBC in FY24, show data from the Insolvency and Bankruptcy Board of India (IBBI).
“2024 was a lively year for insolvency law in the country," said Anoop Rawat, partner, Shardul Amarchand Mangaldas. “While there were no changes to the parent legislation, the IBBI implemented key reforms, particularly in real estate insolvencies and voluntary mediation."
However, the efficiency of IBC came under question, especially in airline insolvencies. Jet Airways and Go First failed to revive, with the former being sent to liquidation and the latter unable to secure a resolution plan. Vacancies in the National Company Law Tribunal also hindered the process, with 19 out of 63 sanctioned positions, including the president’s post, lying vacant.
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