Legal & Industry Updates - July 2025
LEGAL & INDUSTRY UPDATES
Companies (Listing of Equity Shares in Permissible Jurisdictions) Amendment Rules, 2025 (“Rules, 2025”) (source)
The Ministry of Corporate Affairs (“MCA”), on 3rd July, 2025, has notified Rules, 2025, wherein the amended rules replaces the earlier version of Form LEAP-1, as prescribed in the Second Schedule of the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024, with a newly structured and detailed format with the aim to enhance clarity and ensure better regulatory compliance by introducing standardised, mandatory fields. These fields are designed to comprehensively capture all essential details related to the prospectus filing process for overseas equity listings. Further, it requires detailed disclosures, including legal proceedings and prospectus-related timelines as well as explicit declaration regarding any ongoing inspection, investigation, or inquiry under the Companies Act, 2013 (“CA, 2013”) so that the investors could assess potential legal or compliance risks before an overseas listing.
Companies [Corporate Social Responsibility (“CSR”) Policy] Amendment Rules, 2025 (“CSR Rules”) (source)
The MCA, on 7th July, 2025, has notified the CSR Rules, wherein it replaces the previous e-Form CSR-1 with a restructured, more detailed version that requires applicants to submit comprehensive information. The updated rules require all entities intending to implement CSR activities on behalf of companies under section 135 (CSR) of the CA, 2013, to comply with the new disclosure and filing requirements. The primary objective is to ensure that only eligible and verified organizations receive CSR funds and execute related projects. Post the amendment, Form CSR-1 is no longer available as a downloadable PDF, instead, applicants must complete and submit the form through a fully web-based format on the MCA21 portal. This change aligns with India’s broader initiative to promote digital compliance and enhance the ease of doing business.
Ministry of Labour and Employment (“Labour Ministry”) Notifies Relaxed Employees’ Deposit Linked Insurance (“EDLI”) Criteria for Family Benefits (source)
The Labour Ministry has formally notified relaxed eligibility criteria for EDLI scheme under Employees’ Provident Fund Organization, with the aim to strengthen financial protection for families of deceased employees, especially those with short service durations or irregular work histories. The revised guidelines ensure that the family of a deceased Employee Provident Fund member is eligible for a minimum assurance benefit of INR 50,000. This applies even when the employee’s average provident fund balance is lower than the specified amount. Further, prior to the amendment, even short breaks between jobs such as weekends or holidays would disqualify employees from receiving the full EDLI benefit. However, the new rules now allow gaps of up to 60 days between two spells of employment to be treated as continuous service.
Enforcement Directorate (“ED”) Files Foreign Exchange Management Act, 1999 (“FEMA”) Case Against Renowned E-Commerce Platform for Foreign Direct Investment (“FDI”) Violations (source)
The ED has registered a case under FEMA against a reputed e-commerce platform, its linked companies and directors for FDI contravention amounting to INR 1,654 crore. The complaint has been filed under Section 16(3) (Appointment of Adjudicating Authority) of FEMA after the federal agency received credible information that the aforesaid platform and its related companies are doing multi-brand retail trade in the guise of "wholesale cash and carry" which is in alleged violation of extant FDI guidelines.
Startups Seek Central Government (“CG”) Nod to Use Aadhaar Know Your Customer (“KYC”) for Gig Workers (source)
Various consumer-facing startups are planning to apply to the CG for an explicit approval for Aadhaar authentication as they struggle to verify their gig workers via simple Aadhaar e-KYC processes. The push came after the Ministry of Electronics and Information Technology’s clampdown on all forms of unauthorised use of Aadhaar-based digital onboarding services. On January 31, 2025, CG issued a notification allowing private companies to use Aadhaar rails for specific purposes, but only after an explicit clearance from the concerned government department. It is through this route that startups are hoping to impress upon the CG the need for them to use the Aadhaar database for authentication of their delivery personnel and frontline workers.
Indian Startups Reignite Hiring With 80,000 Technology (“Tech”) Jobs in Financial Year (“FY”) 2026 )source
As reported, startups are expected to add 80,000 new tech jobs in FY 2026, marking a return to pre-downturn hiring levels. This rebound is driven by a shift in hiring strategy i.e. from aggressive headcount expansion to leaner, skill-based teams focused on sustainable growth. Startups are prioritizing experienced professionals with expertise in Artificial Intelligence, data analytics, cybersecurity, and cloud computing. Furthermore, Tier-2 and Tier-3 cities, which now host over 51% of Department for Promotion of Industry and Internal Trade-recognized startups, are emerging as attractive hubs due to lower operational costs, digitally skilled talent pools, and reduced attrition rates.
Disclaimer: The updates provided in this document is not a legal opinion and does not claim to capture all legal developments related to the subject matter stated herein. It is advisable to seek legal advice for accurate applicability, prior to relying on the updates for any legal matter.