CENTRE OPERATIONALISES LABOUR CODES, PUBLISHES RULES-- WITH THE LATEST GAZETTE NOTIFICATION OF RULES, THE ENTIRE LABOUR CODE FRAMEWORK IS NOW FULLY FUNCTIONAL NATIONWIDE

 CENTRE OPERATIONALISES LABOUR CODES, PUBLISHES RULES-- WITH THE LATEST GAZETTE NOTIFICATION OF RULES, THE ENTIRE LABOUR CODE FRAMEWORK IS NOW FULLY FUNCTIONAL NATIONWIDE

FULLY OPERATIONALISED

The Centre has fully operationalized India’s new labour law framework by notifying the final rules for all four labour codes in the official gazette, completing a major labour reform process initiated over five years ago.

The four codes broaden worker protection, easing business operations and promoting a pro-worker labour ecosystem.

THE FOUR CODES:

The Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020), officially came into force on November 21, 2025.

GAZETTE NOTIFICATIONS

In over 30 gazette notifications issued on Friday (May 8, 2026) and Saturday (May 9, 2026), the Union government fully operationalized the four Labour Codes. Officials maintained that the rules had been published with “minor amendments” to the draft rules pre-published in December 2025.

MAJOR PROVISIONS:

·      Eight-hour workday and 48-hour weekly cap.

·      Mandatory weekly rest days; overtime pay for work on rest days.

·      Digital compliance: electronic registers, wage slips, claims, and notices.

·      Record-keeping: employers must preserve wage, overtime, and attendance records for 5 years.

·      National floor wage to be fixed by Centre in consultation with states.

·      Social security coverage extended to gig and platform workers, funded by aggregator contributions.

·      Equal wages for men and women

·      Maternity leave increased from 12 to 26 weeks

·      Work-from-home provisions for women

·      Annual free health check-ups for workers aged 40+

·      A National Reskilling Fund for unemployed workers needing retraining.

WHAT CHANGED FROM DRAFT RULES?

DROPPED MINIMUM WAGE FORMULA:

 The earlier calorie/clothing/housing-based formula (from the 1991 Supreme Court Reptakos Brett case) was removed. Minimum wage criteria will now be separately specified by the Centre. Experts warn this could lead to lower wages and greater disparities across states.

MODEL STANDING ORDERS 2026:

 Applicable to mining, manufacturing, and services sectors; require detailed worker records including mobile number, email, and ESI number.

IMPACT ON STAKEHOLDERS

EMPLOYEES:

·      Payslips may show reduced take-home pay due to restructured wage definitions.

·      Gig workers gain statutory social security rights for the first time.

EMPLOYERS (ESPECIALLY MSMES & IT FIRMS):

·      Payroll structures must be reworked.

·      Compliance burden shifts to digital record-keeping.

·      Thresholds (100–300 workers) for certain provisions may affect hiring flexibility.

STATES ROLE

·      Central rules apply mainly to sectors under Union jurisdiction (telecom, banking, insurance, mines, ports, aviation, PSU contractors).

·      States must notify their own rules to complete implementation.

CONCLUDING THOUGHTS

India’s labour law overhaul is now legally in force, but its real-world impact will depend on how states implement their rules and how employers adapt payroll and compliance systems. For workers, especially in the unorganised and gig economy, this reform promises broader protections—though wage fairness remains a contested issue.

# YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,

SEBI PROPOSES BUY-BACK RULE CHANGES TO EASE COMPLIANCE BURDEN ON LISTED COMPANIES

 SEBI PROPOSES BUY-BACK RULE CHANGES TO EASE COMPLIANCE BURDEN ON LISTED COMPANIES

A MAJOR OVERHAUL

SEBI has proposed a major overhaul of buyback rules for listed companies, reintroducing open market buybacks via stock exchanges, reducing compliance burdens like mandatory merchant banker appointments, and tightening safeguards around promoter participation and public shareholding. The consultation paper is open for public comments until May 29, 2026.

KEY PROPOSED CHANGES THROUGH STOCK EXCHANGES

RETURN OF OPEN MARKET BUYBACKS

Open market buybacks through stock exchanges, discontinued in April 2025, are set to be reintroduced.

This move aligns with recent tax changes that treat buyback proceeds as capital gains, eliminating earlier arbitrage.

SHORTER BUYBACK TIMELINE

 

Maximum duration capped at 66 working days (instead of six months).

Companies must deploy at least 40% of earmarked funds in the first half of the buyback period.

REDUCED COMPLIANCE BURDEN

Appointment of a merchant banker becomes optional, lowering costs for companies.

ENHANCED SHAREHOLDER COMMUNICATION

Companies must electronically notify shareholders within one working day of a buyback announcement.

PROMOTER & PUBLIC SHAREHOLDING SAFEGUARDS

Promoter holdings will be frozen at the ISIN level during buybacks (with limited exemptions).

Buybacks explicitly linked to minimum public shareholding (MPS) norms to prevent breaches.

REGULATORY CONSISTENCY

Gap between two buybacks aligned with the Companies Act, 2013, replacing the current one-year restriction within one year ('twelve months') that is from the date of closure of the preceding buyback offer.

TRADING MECHANISM:

The requirement for a separate trading window is scrapped; buy-backs can happen through the regular market channels.

 

SHIFT IN RESPONSIBILITY:

Procedural duties will move from merchant bankers to companies, stock exchanges, and secretarial auditors.

COMPARISON: OLD VS PROPOSED FRAMEWORK

Aspect	Old Rules (till 2025)	Proposed 2026 Changes
Open Market Buybacks	Discontinued (Apr 2025)	Reintroduced via stock exchanges
Timeline	Up to 6 months	Max 66 working days
Utilisation Requirement	40% in first half	Retained
Merchant Banker Requirement	Mandatory	Optional
Shareholder Notification	No strict timeline	Within 1 working day
Promoter Participation	Limited safeguards	Frozen holdings, stricter norms
Gap Between Buybacks	1 year	Aligned with Companies Act

 

RISKS & TRADE-OFFS

• Shorter timeline may pressure companies to act quickly, potentially reducing flexibility.
• Optional merchant banker role lowers costs but could reduce professional oversight.
• Promoter restrictions may limit flexibility for controlling shareholders.
• Tax parity removes arbitrage but could reduce attractiveness of buybacks compared to dividends

PRACTICAL IMPACT ON LISTED COMPANIES

If implemented, the proposals may:

·       Reduce compliance costs,

·       Provide faster capital restructuring options,

·       Improve flexibility in treasury management,

·       Simplify execution procedures,

·       While simultaneously tightening governance oversight around promoter actions and shareholder protection.

# YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,

SPECIAL RESOLUTION PASSED FOR THE APPOINTMENT OF INDEPENDENT DIRECTOR FAILED – BUT STILL DCB BANK IS ABLE TO APPOINT THAT INDEPENDENT DIRECTOR – HOW ?

 SPECIAL RESOLUTION PASSED FOR THE APPOINTMENT OF INDEPENDENT DIRECTOR FAILED – BUT STILL DCB BANK IS ABLE TO APPOINT THAT INDEPENDENT DIRECTOR – HOW ?

APPOINTMENT OF ID- THOUGH LOST AS SPECIAL RESOLUTION- BUT REGULATION 25 (2A) OF SEBI LODR COMES TO THE RESCUE !! INTERESTING CASE STUDY OF DCB BANK LTD

FAILURE OF SPECIAL RESOLUTION

DCB BANK LTD’s recent case of appointment of Suhail Amin Nathani  as Independent director of the bank highlights how Regulation 25(2A) of SEBI LODR saved the appointment of an Independent Director even though the special resolution failed—since a majority of shareholders (including public shareholders) voted in favor, the appointment was deemed valid.

SHAREHOLDERS’ VOTES IN FAVOR EXCEEDED THOSE AGAINST

The special resolution did not achieve the required 75% majority.

More than 50% of shareholders voted in favor, and crucially, public shareholders’ votes in favor exceeded those against.

Under Regulation 25(2A) of SEBI LODR, the appointment was still deemed valid despite failing as a special resolution.

REGULATION 25(2A) – THE RESCUE CLAUSE

 This provision was Introduced in 2022 to prevent governance deadlocks in LODR by SEBI.

PROVISION:

If a special resolution for appointment/reappointment/removal of an Independent Director fails, but:

Votes in favor > votes against, and

Public shareholders’ votes in favor > votes against,

→ then the appointment/removal is deemed approved.

DCB BANK CASE – LESSONS

SHAREHOLDER DEMOCRACY:

Even though the special resolution failed, the majority’s will have prevailed.

PRACTICAL SAFEGUARD:

Regulation 25(2A) ensures Independent Directors aren’t hostage to promoter disagreements.

CORPORATE GOVERNANCE IMPACT:

Reinforces SEBI’s intent to balance transparency, independence, and shareholder rights.

QUICK COMPARISON WITH NORMAL WITH THAT OF REGULATION 25(2A) EXCEPTION

REQUIREMENT	NORMAL RULE	REGULATION 25(2A) EXCEPTION
Appointment of ID	Needs special resolution (75%)	Valid if majority + public shareholders’ majority support
Risk	Appointment blocked despite majority	Appointment goes through
Beneficiaries	Promoters can block	Public shareholders’ voice prevails

TAKEAWAY:

DCB Bank’s case is a textbook example of how Regulation 25(2A) of SEBI LODR acts as a safety net—ensuring Independent Directors can be appointed when majority support exists, even if the special resolution technically fails.

#YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,

WHETHER SHRI KUMAR MANGALAM BIRLA APPOINTEMENT AS THE NON-EXECUTIVE CHAIRMAN OF VODAFONE IDEA (VI) WILL TURNAROUND THE VODAPHONE IDEA?

 WHETHER SHRI KUMAR MANGALAM BIRLA APPOINTEMENT AS THE NON-EXECUTIVE CHAIRMAN OF VODAFONE IDEA (VI) WILL TURNAROUND THE VODAPHONE IDEA?

WHY VODAPHONE IS APPOINTING KUMAR MANGALAM BIRLA AS THE NON-EXECUTIVE CHAIRMAN, EFFECTIVE MAY 5, 2026. WHO IS ALREADY SERVING AS A NON-EXECUTIVE DIRECTOR OF VODAPHONE?

TO REINFORCE PROMOTER COMMITMENT

Vodafone Idea (Vi) appointed Kumar Mangalam Birla as Non-Executive Chairman to signal a strategic reset and reinforce promoter commitment as the company attempts a long-term turnaround.

FINANCIAL CHALLENGES AND INTENSE COMPETITION

Kumar Mangalam Birla is stepping into this leadership role at a crucial time for the telecom operator, which has been navigating financial challenges and intense competition in India’s telecom sector.

CHAIRMAN OF THE ADITYA BIRLA GROUP

Birla is the Chairman of the Aditya Birla Group, one of India’s largest conglomerates, and has been closely associated with Vodafone Idea since its formation through the merger of Idea Cellular and Vodafone India. His return to the chairman’s seat is seen as a significant move, signaling stronger promoter involvement in steering the company’s future.

KEY REASONS FOR THE APPOINTMENT

PROMOTER CONFIDENCE:

His return to the helm is seen as a "reposing of faith" by the Aditya Birla Group in the debt-laden telco.

FUNDING PUSH:

The move coincides with Vi's efforts to secure fresh debt and equity funding (aiming for up to ₹35,000 crore) to support critical capital expenditure.

AGR LIABILITY CLARITY:

 The Department of Telecommunications recently reduced Vi’s Adjusted Gross Revenue (AGR) dues by 27% (to ₹64,046 crore), easing a major financial overhang and reviving investor interest.

OPERATIONAL STABILITY:

Following years of subscriber losses and financial stress, Birla's seasoned leadership is intended to boost lender and investor confidence as the company targets three-fold EBITDA growth in three years.

CURRENT FINANCIAL POSITION (FY26)

MARKET PRICE (APRIL 2026):	₹8 PER SHARE
52-WEEK RANGE:	₹6 – ₹19
MARKET CAPITALISATION:	₹ 56,000 CRORE
PROMOTER HOLDING:	36.8%
GOVERNMENT OF INDIA HOLDING:	26% (VIA EQUITY CONVERSION OF SPECTRUM DUES)
ARPU (AVERAGE REVENUE PER USER):	₹155 IN FY26, UP FROM ₹129 IN FY25 (20% GROWTH)

 

STRATEGIC INFLUENCE OF BIRLA’S APPOINTMENT

1. FUNDRAISING & CAPITAL INFUSION

·       Birla’s credibility as Chairman of the Aditya Birla Group strengthens investor confidence.

·       Likely to spearhead negotiations with banks, global funds, and strategic partners for fresh equity or debt infusion.

·       His presence signals promoter commitment, which is critical for attracting long-term capital.

PARTNERSHIPS & ALLIANCES

·       Birla may push for collaborations in 5G infrastructure, enterprise solutions, and digital services.

·       Potential tie-ups with global tech firms (cloud, IoT, AI) to diversify revenue beyond consumer mobility.

·       Could explore tower-sharing or fiber partnerships to reduce capex burden.

MARKET POSITIONING

·       Birla’s leadership may help reposition Vi as a “value-driven challenger” brand.

·       Emphasis on customer retention, digital-first services, and enterprise-grade reliability.

·       Strategic narrative: Vi as the third strong pillar in India’s telecom ecosystem.

CONCLUDING REMARKS

In summary, Vodafone Idea’s financial position in 2026 is fragile but improving. Kumar Mangalam Birla’s appointment as Non-Executive Chairman signals stronger promoter involvement, which—combined with government backing and 5G rollout—could be pivotal in shaping Vi’s turnaround.

Birla’s return as Chairman is more than symbolic—it’s a signal of promoter re-engagement at a time when Vodafone Idea needs credibility, capital, and strategic clarity. His leadership could be the turning point that determines whether Vi stabilizes and grows, or continues to struggle against Jio and Airtel.

 

#YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,

RD HYDERABAD DELETS PENALTIES TOTALING ₹4.73 CRORE LEVIED ON DIGILOGIC SYSTEMS LIMITED AND ITS DIRECTORS FOR VIOLATIONS FOR NOT DEPOSITING APPLICATION MONEY IN A SEPARATE BANK ACCOUNT

 RD HYDERABAD DELETS PENALTIES TOTALING ₹4.73 CRORE LEVIED ON DIGILOGIC SYSTEMS LIMITED AND ITS DIRECTORS FOR VIOLATIONS FOR NOT DEPOSITING APPLICATION MONEY IN A SEPARATE BANK ACCOUNT

Earlier , I have reported levy of ₹4.73 CRORE by ROC Hyderabad on DIGILOGIC SYSTEMS LIMITED AND ITS DIRECTORS as penalty for not depositing share application money in a separate bank account in a right issue . You can read the full case study in https://rvseckarcompanylaw.blogspot.com/2026/04/private-placement-violation-mca-imposed.html

APPEAL TO RD HYDERABAD AGAINST THE PENALTY BY ROC HYDERABAD

An appeal was made under section 454 of Companies Act, 2013 by the appellant DIGILOGIC SYSTEMS LIMITED in reference to the subject cited above.

COMPANY ARGUED THAT IT MAINTAINED A SEPARATE BANK FOR RIGHT ISSUE APPLICATION MONEY

The company has informed that it has passed resolution to keep the amount of the issue in a separate bank account specifying the account. The company has two bank accounts, one for its daily operations and the other was opened earlier for statutory requirements. The company had deposited the amount collected in the said designated account and no other transactions took place from the account till the allotment of shares. Only thereafter the funds were transferred to the bank account used for daily operations and used for business of the company.

MANAGING DIRECTOR CONTENDED THAT HE WAS MISGUIDED BY PROFESSIONALS

Managing director stated that he is a technical person from the defense sector and he was wrongly advised to file GNL-2 by some professional. However, later on when proper guidance has taken from professionals, it was found that there is no violation.

VERDICT

In view of the submissions made and perusal of the bank statement attached to the appeal. The RD is of the view that the company has complied with the requirement of law and there is no violation. Hence the order of the ROC Hyderabad is set aside.

KEY TAKEAWAYS

Due to strong documentary evidence and proof of no harm to investors, DigiLogic successfully argued that it substantially complied with Section 42 and the lapse was inadvertent.

The company had  proved that it deposited the amount collected in the said designated account and no other transactions took place from the account till the allotment of shares by producing the bank statements.

The company saved the fine of  ₹4.73 CRORE levied by ROCA Hyderabad by appealing to RD , Hyderabad under section 454 of Companies Act, 2013.

#YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,

IMPORTANT ANNOUNCEMENT TO LISTED COMPANIES BY NSE FOR REPORTING OF INSIDER TRADING DISCLOSURES, CODE OF CONDUCT (PIT) VIOLATIONS AND SINGLE FILING(API)

 IMPORTANT ANNOUNCEMENT TO LISTED COMPANIES BY NSE FOR REPORTING OF INSIDER TRADING DISCLOSURES, CODE OF CONDUCT (PIT) VIOLATIONS AND SINGLE FILING(API)

RD MUMBAI DELETES PENALTY OF ₹8,00,000 FOR MISSING CIN ON LETTERHEADS LEVIED BY ROC GOA ON INDU PACKAGING (DAMAN) LIMITED

 

RD MUMBAI DELETES PENALTY OF ₹8,00,000 FOR MISSING CIN ON LETTERHEADS LEVIED BY ROC GOA ON INDU PACKAGING (DAMAN) LIMITED

BACKGROUND OF THE CASE

COMPANY INVOLVED:

 Indu Packaging (Daman) Limited

INITIAL PENALTY:

ROC Goa had imposed fines under Section 454 of the Companies Act, 2013.

REASON:

The company allegedly failed to comply with statutory requirements, including proper disclosure of CIN on official documents like letterheads.

FINE AMOUNT LEVIED:

₹5,00,000 on the company and ₹1,00,000 each on three directors, totaling ₹8,00,000.

APPEAL TO RD MUMBAI

RIGHT TO APPEAL:

Under Section 454(5) & (6) of the Companies Act, companies can appeal adjudication orders to the Regional Director within 60 days.

OUTCOME:

RD Mumbai reviewed the case and deleted the penalty, effectively nullifying ROC Goa’s order.

IMPLICATION:

 The company and its directors are relieved from paying the fines, and the alleged non-compliance is no longer penalized.

KEY TAKEAWAYS FOR COMPANIES

CIN DISCLOSURE:

 Companies must ensure their Corporate Identification Number is printed on all official documents (letterheads, invoices, notices, etc.).

COMPLIANCE VIGILANCE:

 Even minor lapses like missing CIN can attract penalties, though appeals may succeed if the order is found excessive or procedurally flawed.

APPEAL MECHANISM:

Regional Directors serve as appellate authorities, providing companies a chance to contest ROC orders.

APPELLATE REVIEW

ROC Goa’s penalty against Indu Packaging (Daman) Limited for missing CIN on letterheads has been struck down by RD Mumbai, reinforcing the role of appellate review in corporate compliance matters.

# YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,