Welcome to ETLegalworld newsroom! In a week marked by strategic legal shifts, India demonstrated its intent to modernize regulation without sacrificing domestic priorities. The government moved closer to breaking a trade impasse with the US by selectively allowing GM animal feed imports—sidestepping sensitive food sectors. Simultaneously, the proposal for an independent aviation safety board aims to overhaul air crash investigations in the wake of rising safety concerns. Most notably, the approval of a Group Insolvency framework under IBC 2.0 signals a long-awaited move toward efficient resolution of corporate conglomerates. Together, these developments reflect a broader legal philosophy: purposeful reform, global alignment, and pragmatic sovereignty.
India’s Legal & Regulatory Landscape: Spotlight on Major Developments
Karnataka’s “Fake News” Law: Precision or Overreach?
Karnataka recently proposed a new Misinformation & Fake News (Prohibition) Bill, imposing jail terms up to seven years for spreading “fake news,” “anti‑feminist” content, or superstition. While aimed at combating digital harm, the vague framing of offences and harsh penalties—without clear definitions—spark legitimate free speech concerns. This mirrors broader anxieties over digital regulation in India. How can the state strike a balance between safeguarding public trust and preserving democratic expression?
Delhi Deregulates Police-Approved Licenses
In a landmark move, Delhi’s LG and Union Home Ministry have exempted seven categories—including hotels, eateries, gaming parlours, stadiums, and swimming pools—from needing police NOCs, significantly simplifying regulatory compliance. This long-awaited reform—building on partial deregulation in 2023—may serve as a template for nationwide streamlining aimed at improving ease of doing business.
Electricity Futures Begin Trading
Following SEBI and NSE approval, starting July 14, 2025, monthly electricity futures contracts will trade on NSE (and soon MCX). These financial instruments offer utilities a powerful hedging tool, allowing them to lock in electricity costs—enhancing stability and potentially attracting private investment into India’s stressed power sector.
Sweeping SEBI Reforms in June 2025
SEBI’s June board meeting ushered in major reforms to reduce compliance burdens, broaden market access, and align Indian capital markets with global norms—making the regime more empathetic to market realities. This bold move repositions SEBI as a modern, facilitative regulator.
Waqf Act Overhaul Gains Parliamentary Approval
The Waqf (Amendment) Act 2025, now in force, renames the law to the United Waqf Management, Empowerment, Efficiency and Development Act (UWMEED). The overhaul aims to protect and reclaim encroached religious endowment assets—over 870,000 properties—reshaping institutional administration and dispute resolution frameworks.
Coaching Centre Regulation in Rajasthan
With growing scrutiny on mental health and misleading claims, Rajasthan passed the Coaching Centres (Control & Regulation) Act 2025, mandating registration, standards, student counselling, grievance redressal, and limits on fees. This sets a new standard for educational accountability and institutional responsibility.
Passport & Data Protection Rule Updates
* Passport Rules 2025 usher in biometric e‑passports and digital address linkage, simplifying travel security.
* DPDP Consent Management Rules (June 2025) establish clear technical frameworks under the Digital Personal Data Protection Act, futuristic governance over data privacy.
BCI Allows Foreign Lawyers for Arbitration
In a notable change, the Bar Council of India amended its rules to let foreign lawyers and firms advise in international law and arbitration matters in India, boosting India’s position as a global arbitration hub while preserving Indian court jurisdiction for domestic law.
Big week for ETLegalworld with three breaking news. From US-India trade to overhauling IBC laws to government mulling Independent aviation board we broke it all. Let’s analyse these news.
Grain Diplomacy: US GM Animal Feed May Unblock Trade Deadlock
India is considering a discreet but strategic move—allowing imports of genetically‑modified animal feeds like soybean meal and DDGS—to smooth the path for a stalled India–US trade pact. This narrowly tailored concession avoids politically sensitive sectors (dairy, food crops) while bolstering India’s livestock and poultry industries. With a July 9 deadline looming, officials expect an announcement by July 6. The move signals India’s willingness to balance economic pragmatism with domestic safeguards.
Why it matters:
* Skirts core food/Dairy concerns yet stimulates agricultural-linked industry.
* Could form a template for further calibrated GM imports.
* Eases pressure on stalled trade talks with a middle-ground gesture.
India Proposes Independent Aviation Safety Board
In response to the Air India Flight 171 crash in Ahmedabad, India’s Ministry of Civil Aviation is actively exploring the creation of an autonomous Aviation Safety Board—modeled after the U.S. NTSB—with full legislative independence from oversight regulators such as DGCA and AAI. Supported by a concurrent parliamentary review and special audits of all Boeing 787s, this initiative aims to eliminate conflicts of interest and bring India’s accident investigation framework in line with global aviation norms.
Impact:
* Introduces impartial, expert-led crash investigations.
* Could resolve longstanding oversight bottlenecks (~50% DGCA vacancies).
* Reinforces public trust and helps India handle its rapid aviation expansion.
IBC 2.0: Landmark Group Insolvency Framework Approved
New Delhi has received Prime Minister’s Office backing for sweeping reforms to the Insolvency & Bankruptcy Code (IBC), establishing a group insolvency mechanism to handle financially interlinked corporate entities under one unified process. The reforms also include creditor-led models and cross-border provisions, with amendments set for the upcoming monsoon session.
Key outcomes:
* Enables holistic resolution of parent-subsidiary conglomerates—reducing delays and boosting recoveries.
* Aligns with global best practices (UNCITRAL).
* Offers faster value redistribution in complex cases like IL&FS or Videocon.
Global Regulatory Highlights:
UK’s Cyber Security & Resilience Bill
The UK is progressing its Cyber Security & Resilience Bill, expanding mandatory incident reporting—especially for ransomware—mandating audits and mandating cyber defenses for critical infrastructure, aiming to match the EU’s NIS 2 regime.
EU Corporate Sustainability Due Diligence Directive
The EU’s newly enacted Corporate Sustainability Due Diligence Directive (CSDDD) mandates that companies identify and mitigate adverse human rights and environmental impacts across their global value chains—raising the bar on corporate accountability.
UK–India Investment Treaty & ISDS
The proposed UK–India investment treaty includes an Investor–State Dispute Settlement (ISDS) mechanism allowing companies to sue governments over damaging policy changes. For India, this marks a reversal of its 2017 stance and will test the balance between sovereign autonomy and investor assurance.
D. South Korea’s AI Act & Hong Kong’s Treasury Shares Regime
* South Korea introduced a comprehensive AI Act in late 2024, regulating high-impact AI systems—a notable addition to the global AI regulatory ecosystem alongside the EU.
* Hong Kong will implement new rules permitting listed companies to hold treasury shares—aligning with global corporate governance standards—effective April 2025.
Analytical Takeaways:
1. Digital Governance Is Rapidly Expanding India is entering a new phase of digital regulation. Laws targeting misinformation, online content, and data protection are becoming stricter—but also more complex. While these aim to protect national interests and digital ecosystems, they raise serious concerns around censorship, privacy, and the overreach of state power. Precision in drafting and clear enforcement mechanisms will be key to avoiding judicial backlash and safeguarding fundamental rights.
2. Deregulation Is Gaining Momentum—But Needs Consistency The move by Delhi to eliminate police NOCs for several businesses is a significant step toward easing bureaucratic bottlenecks. However, deregulation remains fragmented across states. A consistent national framework that balances business freedom with public safety would go a long way in improving India’s ease of doing business rankings and investor sentiment.
3. Institutional Accountability Is Being Strengthened Laws like the Waqf Amendment and Rajasthan’s coaching regulation act point to a broader push toward transparency and governance reform. These laws signal that the government is serious about holding powerful institutions and commercial education players accountable. Implementation, however, will require active civil society oversight and robust grievance redress systems.
4. India’s Financial Markets Are Deepening The introduction of electricity futures and SEBI’s recent compliance relaxations show that Indian regulators are becoming more market-friendly and innovation-oriented. This shift is vital for attracting long-term capital, building investor confidence, and enabling effective risk management tools for businesses in energy and finance sectors.
5. IBC Reform Reflects Legal Maturity The move toward group insolvency and the broader reforms expected in the Monsoon Session reflect a maturing approach to bankruptcy law. Instead of treating default as criminality, the focus is shifting to resolution, fairness, and systemic restructuring. This is essential for India’s global investment credibility and domestic economic health.
6. Global Compliance Pressures Are Mounting International regulatory developments—such as the EU’s due diligence directive, the UK–India investment treaty with ISDS, and AI laws in Korea—are creating new obligations for Indian companies operating abroad. Legal teams must now adopt a global compliance mindset, integrating ESG, data, and arbitration standards across jurisdictions.
7. Regulatory Independence in Safety Oversight Is a Positive Move The proposed creation of an independent aviation safety board mirrors international best practices and represents a commitment to transparent and accountable oversight. This model could be replicated in other sectors, such as food safety, pharmaceuticals, or data protection, where public trust is paramount.
India’s legal landscape in mid‑2025 reflects transformative shifts—from digital regulation and institutional governance to market innovation and global treaty integration. As legal frameworks evolve rapidly—often outpacing implementation—Indian policymakers and corporates must adopt a legal‑agile approach, marrying the pace of innovation with principled governance. Only then can India’s ambition of becoming a resilient, globally-integrated economy truly take
