Industry Trends

Insurance a long game with hurdles, foreign investors unlikely to rush in

India now permits full foreign ownership in insurance firms. However, industry experts believe this change will not immediately bring many new foreign companies. Setting up an insurer requires substantial investment and a long-term view in a competitive market. Existing joint ventures might see increased stakes, but new ventures from scratch are unlikely.

Industry Trends

Niti Aayog drafts plan to shield senior citizens from digital scams

India is preparing a policy road map to protect senior citizens from digital scams, with Niti Aayog working on a multi-ministerial action plan. The plan will focus on digital literacy, stronger security and coordinated monitoring as cases of ‘digital arrest’ fraud rise. The initiative will form part of broader elderly care measures, with details likely in Budget 2026-27.

Industry Trends

RBI continues to build forex reserves which rose to $696 billion

India’s forex reserves rose by $3.3 billion to $696.61 billion in the week ended December 26, RBI data showed. The increase was led by a sharp $2.95 billion jump in gold holdings and a modest rise in foreign currency assets. Reserves remain near record highs, providing cover for 9–10 months of imports amid global volatility.

Industry Trends

Centre designates core customs and indirect tax digital platforms as “critical information infrastructure” under IT Act

The Indian government has designated core customs and indirect tax digital platforms, including ICEGATE, ECCS, and ACES-GST, as "critical information infrastructure." This move significantly enhances cybersecurity controls and restricts access to authorized personnel only. Unauthorized access to these protected systems now carries criminal penalties under the Information Technology Act.

Industry Trends

Sebi tightens screws on merchant bankers with phased net-worth requirements, liquidity norms

Sebi has introduced a phased hike in net-worth and liquid capital norms for merchant bankers starting January 2026, alongside tighter underwriting limits, governance standards and revenue thresholds. The move aims to strengthen market intermediaries amid India’s booming IPO pipeline, ensuring stronger compliance, better capital buffers and improved investor protection.