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India’s Gen Z is increasingly drawn into online betting due to the ease of digital payments, leading to financial losses and legal risks. Many are unaware of the legal and tax implications, while enforcement lags behind the fast-evolving betting landscape. The allure of quick money and low-risk perception makes betting apps particularly appealing to this digitally native generation. Read more

India’s insurance sector is poised for growth following the 100% FDI reform, attracting foreign investment in health insurance and reinsurance. While increased competition and regulatory challenges persist, the market is set to benefit from advanced underwriting, innovation, and a growing role as a regional reinsurance hub. Venkatesh Raman Prasad, Partner at JSA Advocates & Solicitors said scaling challenges persist. “Distribution remains heavily concentrated in urban markets, compliance expectations continue to be significant, and evolving data protection and localisation requirements add another layer of operational complexity. In addition, strict capital and solvency requirements and absence of a composite licensing framework may continue to impact the pace at which global insurers scale in India, he said. Read more

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Companies are postponing IPOs rather than resizing them, as valuation expectations clash with current market conditions. Despite SEBI’s allowance to reduce IPO sizes, firms are hesitant to do so, fearing it signals weak demand. Many prefer to wait for improved market conditions to maintain favourable valuations and investor perceptions. “Currently, we do not anticipate issuers to substantially alter their IPO size,” said Sourav Modi, Partner, JSA Advocates & Solicitors. “The macroeconomic conditions coupled with the valuation expectations of the issuers and investors not aligning in current market conditions makes it more challenging to approach the market through IPOs.” Read more

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The Supreme Court’s decision to uphold a 28% retrospective GST on online gaming has severely impacted the industry, risking massive job losses and forcing companies to restructure. The PROG Act has already led to significant layoffs, and firms must innovate to survive. Excessive regulation may drive users to unregulated platforms, raising policy concerns. Shareen Gupta, Partner, JSA Advocates and Solicitors, said the surprising outcome of the ruling for the gaming industry is the retrospective application of valuation provisions, affirming the levy of GST since its inception, on the value of the monies staked by the players. The ruling will have an impact on the entire online gaming industry. Read more

India and the US are set to intensify trade negotiations covering market access, tariffs, customs facilitation and investment rules as both sides work towards a broader bilateral trade agreement framework.  Some legal experts also questioned whether the framework would suit retail investors. “Tokenised products can be complex and may be subject to volatility, making them potentially unsuitable for retail investors,” said Tirthankar Datta, partner at JSA Advocates & Solicitors. Tokenising volatile underlying assets, commodities or other financial instruments could expose retail investors to speculative price swings, he added. Read more

Private equity and venture capital investors are managing $32 billion in Indian companies, focusing on staggered exits amid market volatility. Key sectors include fintech and technology, with significant holdings in companies like Lenskart and One 97 Communications. Block deals remain a preferred exit strategy, allowing for better timing and pricing management. Bir Bahadur Sachar, Partner at JSA Advocates & Solicitors, said staggered sell-downs are being used to preserve valuations and avoid excessive pressure on stocks where multiple investors are looking to monetise simultaneously. Read more

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Lenders, led by SBI, aim to sell guarantees related to Essar Steel’s loans, facing a tough recovery process. With liabilities at ₹13,751.21 crore, recovery is hindered by asset location and value. Buyers may not cover dues fully, and the reserve price is ₹200 crore. Lawyers outlined the causes of delay. “That process may not always result in full recovery, and it is important to recognize that enforcement can be time-consuming, particularly where assets are located overseas rather than in India. Attaching assets situated outside India will also be an expensive affair for lenders,” said Pratish Kumar, partner, JSA Advocates & Solicitors. Kumar, who specialises in securitisation and direct sale of stressed assets, pointed out that recovery under these kinds of transactions depends on the “nature and quality” of the assets being acquired. “In some situations, the objective may simply be to negotiate and settle the loan. At times, the process may also serve as a pressure mechanism to encourage repayment of the outstanding dues.” Read more

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India’s new labour code rules introduce the possibility of a four-day work week, contingent on employee consent and state regulations. While the framework allows compressed schedules, maintaining a 48-hour weekly cap, practical implementation faces challenges due to state laws and sector-specific operational hurdles. Sajai Singh, Partner at JSA Advocates & Solicitors, said a four-day work week would require employee agreement and should not be viewed as an automatic workplace entitlement. Singh noted that any work beyond the agreed arrangement would qualify for overtime compensation at twice the regular wage rate. He also highlighted that the proposed 12-hour structure includes mandatory breaks and rest periods. Read more

As EV ownership grows in India, residents face challenges installing chargers due to housing society objections and fire safety concerns. While regulations permit installations, approvals from multiple authorities are needed. Some states are easing processes, but fire safety remains a significant issue, potentially leading to stricter regulations. According to Anupam Varma, Partner at JSA Advocates & Solicitors, installation of EV chargers in residential basements is broadly permitted under India’s current regulatory framework, though subject to multiple approvals and safety conditions. The clearest backing comes from the power ministry’s 2024 Guidelines for Installation of Electric Vehicle Charging Infrastructure. These explicitly state that residents can install private EV charging stations in their designated parking spaces, with electricity supplied either through their existing meter or a separate sub-meter. Read more

India’s decision to allow 100% foreign direct investment (FDI) in the insurance sector is expected to trigger major ownership restructuring, consolidation, and strategic stake hikes. Global insurers are likely to seek operational control instead of minority partnerships, encouraged by relaxed governance norms and India’s underpenetrated insurance market. Experts believe acquisitions and joint venture reshaping will dominate over new launches, as foreign players aim for quicker scale, better technology integration, and long-term growth opportunities in one of the world’s fastest-growing insurance markets. Venkatesh Raman Prasad, Partner at JSA Advocates & Solicitors, said foreign insurers had increasingly sought larger holdings even before the cap was raised. “Foreign partners have been more and more keen to increase their holdings in insurers which would likely lead to restructuring of shareholding in long-standing insurance JVs. With the conditionalities around dividend repatriation and board composition attached to higher foreign investment being relaxed and simplified, one would expect to see higher foreign participation as well as entry of new foreign players in the market,” he said. Read more

Maharashtra is at the forefront of adopting SEBI’s InvIT-led asset monetization, with Rajasthan and Uttar Pradesh also showing interest. The focus is on roads, power, and renewables, with global investors keen on these assets. The challenge lies in proper asset pricing to gain investor confidence and pass audits. Arka Mookerjee, partner at JSA Advocates & Solicitors, said, “SEBI has been working through associations like BIA to look at promoting asset monetization at State levels. Some of the key sectors that SEBI has been looking at promoting are power sector and data centres.” Read more

Qube Research & Technologies is establishing operations in GIFT City, India’s IFSC, to leverage tax exemptions on derivatives and securities transactions. This move underscores GIFT City’s emergence as a hub for high-frequency trading, offering regulatory predictability and tax advantages over offshore setups, amid India’s growing HFT ecosystem. Rajul Bohra, partner at JSA, said the tax benefits available to specified funds in GIFT-IFSC are explicitly codified in domestic law, making them inherently more certain from a tax perspective. “Unlike offshore fund structures that rely on treaty eligibility and are therefore exposed to GAAR-related challenges, specified funds in GIFT-IFSC derive their tax benefits directly from Indian domestic law,” she added. Read more

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