Law Updates

Subject

Summary: The Ministry of Steel has revised the criteria for domestic status of the iron and steel products in regard to procurement by the Government of India. The new Notification G.S.R. 720(E) of August 7, 2026, has mandated that the Melt and Pour criterion will supersede the previous criteria of 50% Domestic Value Addition (DVA) for an extensive range of steel HS codes under the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy-2025. If your organization supplies steel products to the various government departments, PSUs, and public procurement projects, then it would be affected by this change in the definition of "made in India" in regard to its goods. This regulatory change is of high importance as it changes the criteria for your product to comply with in order to be considered "made in India". Not adhering to the compliance criteria will disqualify your tender or bid, or you may face a penalty for misrepresentation. Business organizations failing to identify which criteria to comply with in respect to HS code or failing to revise their internal procedures may lose out on government contracts. This is where professional regulatory consulting services can help you out. In this article, we provide you with an overview of the change and what you need to do. Key Highlights Here are the key highlights of the Melt and Pour amendment to the DMI&SP Policy that every steel manufacturer and government supplier should know. The Ministry of Steel issued Notification G.S.R. 720(E) on August 7, 2026, amending Appendix-A of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy-2025. The original DMI&SP Policy-2025 was published earlier vide G.S.R. 904(E) dated December 17, 2025. For HS Codes 7301, 7302, 7303, and 7308 to 7326, the earlier requirement of "50% Domestic Value Addition" is now replaced with "Melt & Pour." "Melt & Pour" means the steel used to make these products must comply with the official melt-and-pour definition, and the entire product must be manufactured within India. A revised Appendix-A, listing 49 iron and steel product categories with their HS Codes and applicable condition, has been published along with the notification. Not all HS codes moved to Melt & Pour. HS Codes 7304, 7305, 7306, and 7307 (seamless tubes, welded pipes, and pipe fittings) continue to require 50% Domestic Value Addition. HS Codes 8605, 8606, and 8607 (railway/tramway coaches, goods wagons, and locomotive/rolling-stock parts) also remain under the 50% Domestic Value Addition condition. Appendix-A applies to iron and steel products that can only be procured from domestic sources under this policy, meaning imports are not permitted for these product categories under government tenders. All other provisions of the DMI&SP Policy-2025, apart from this specific change to Appendix-A, remain unchanged. The notification is signed by Abhijit Narendra, Joint Secretary, Ministry of Steel, under File No. 8(2)/2023-ID-I. This amendment affects steel manufacturers, fabricators, traders, EPC contractors, and any business that supplies iron and steel products for government projects, PSU tenders, or infrastructure contracts. The Regulatory Framework Understanding the regulatory framework behind the DMI&SP Policy and this Melt and Pour amendment helps businesses see exactly where this notification fits within India's steel procurement rules. Issuing Authority: Ministry of Steel, Government of India Notification: G.S.R. 720(E), dated August 7, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) Parent Policy: Domestically Manufactured Iron & Steel Products (DMI&SP) Policy-2025, originally notified vide G.S.R. 904(E) dated December 17, 2025 What the DMI&SP Policy Does: The DMI&SP Policy sets out which iron and steel products, when required for government procurement, must be sourced only from domestic (Indian) manufacturers. Appendix-A of this policy is the list of these products, identified by their HS Code, along with the "condition" that determines whether a product counts as domestically manufactured. Scope: This regulation covers iron and steel products classified under certain HS Codes for flat-rolled steel, bars and rods, wire, structural steel, tubes and pipes, containers, chains, springs, household articles of iron and steel, and specified parts of railway rolling stock. Industries Covered: Steel manufacturers, steel fabricators, structural steel suppliers, pipe and tube manufacturers, wire and rod producers, railway component suppliers, and any business bidding for government or PSU contracts involving these steel products. Purpose of Appendix-A: This is because the purchase of such items will be restricted to domestic purchases only, implying that government procurement officers will not import such items if there are other domestically compliant items in the market. What Has Changed? Here is exactly what has changed under the DMI&SP Policy Appendix-A, and how the new Melt and Pour condition compares with the earlier Domestic Value Addition requirement. Before this amendment, most products under Appendix-A had to meet a 50% Domestic Value Addition (DVA) condition to qualify as "domestically manufactured." This meant at least half the value of the product had to be added within India, even if some raw material or semi-finished input came from abroad. Under the new rule, for the HS Codes listed below, this value-addition-based test has been dropped in favour of a process-based test: Melt & Pour. Under Melt & Pour, the origin of the steel is decided by where the steel was actually melted and cast, not by how much value was added afterwards. The notification clarifies that the steel used must meet the melt-and-pour definition, and the finished product must be entirely made within the country. Previous Rule vs New Rule Aspect Previous Rule (Before Aug 7, 2026) New Rule (From Aug 7, 2026) Applicable Condition 50% Domestic Value Addition Melt & Pour Basis of Compliance Value of inputs added in India Where the steel was melted and cast, plus full domestic manufacturing HS Codes Affected 7301, 7302, 7303, 7308–7326 7301, 7302, 7303, 7308–7326 Codes Unaffected (still 50% DVA) 7304, 7305, 7306, 7307, 8605, 8606, 8607 7304, 7305, 7306, 7307, 8605, 8606, 8607 Governing Notification G.S.R. 904(E), dated December 17, 2025 G.S.R. 720(E), dated August 7, 2026 HS Codes Now Under "Melt & Pour" This condition now applies to a wide range of products, including: Flat-rolled iron/non-alloy steel and stainless-steel products (HS 7208–7212, 7219, 7220) Bars, rods, wires, angles, shapes and sections (HS 7213–7217, 7221–7223, 7227–7229) Alloy steel flat-rolled products (HS 7225, 7226) Sheet piling, welded structural sections (HS 7301) Rails and railway/tramway track construction material (HS 7302) Cast iron tubes, pipes and hollow pipes (HS 7303) Structures and parts of structures (HS 7308) Reservoirs, tanks, vats and containers (HS 7309–7311) Wire ropes, cables, barbed wire, fencing, chains, anchors (HS 7312–7316) General articles of iron and steel, springs, stoves, radiators, tableware, sanitary ware, and cast articles (HS 7317–7326) HS Codes That Remain Under "50% Domestic Value Addition" •    Seamless tubes, pipes and hollow profiles (HS 7304) •    Welded/riveted circular tubes and pipes over 406.4 mm diameter (HS 7305) •    Other tubes, pipes and hollow profiles (HS 7306) •    Tube and pipe fittings, such as connectors, couplings and elbows (HS 7307) •    Railway/tramway passenger coaches, not self-propelled (HS 8605) •    Railway/tramway goods vans and wagons, not self-propelled (HS 8606) •    Parts of railway/tramway locomotives or rolling stock, such as bogies, axles and forged wheels (HS 8607) Supplying steel to government tenders? Verify whether your primary mill source meets the new Melt & Pour criteria. [Schedule a Compliance Audit with Corpseed]. Implementation Timeline / Norms Below is the implementation timeline for the Melt and Pour DMI&SP Policy amendment, along with the compliance norms businesses need to follow going forward. Effective Date: The amendment takes effect from the date of publication in the Gazette of India, i.e., August 7, 2026. Relevance: The above-mentioned modified clause is applicable for procurement of goods made of iron & steel that come under the relevant HS codes where the policy on Direct Material and Steel Procurement ("DMI&SP Policy") is applicable, for example, Government Departments, PSU procurements, and projects where there is a need for "Make in India" compliance for steel. Action Required by Business: Suppliers/manufacturers dealing in relevant HS codes must review the compliance documents they currently hold and ensure whether their steel is molten/poured in India or not. Continuity of Other Provisions: The notification specifically states that all other provisions of the DMI&SP Policy-2025, including the rest of Appendix-A, remain unchanged. Businesses dealing in HS codes 7304–7307 and 8605–8607 continue to follow the 50% Domestic Value Addition requirement as before. Why Was This Implemented? Below are the likely reasons behind the government's move to replace Domestic Value Addition with the Melt and Pour standard for steel procurement. The notification itself does not spell out a detailed statement of objects and reasons. Still, the shift from a value-based test to a Melt & Pour standard reflects a broader intent commonly associated with domestic steel procurement policy: Stronger domestic manufacturing check: A Melt & Pour standard ties "Indian origin" directly to where the steel is actually produced, rather than to how much value is added in later processing stages. Support for India's primary steel industry: By anchoring the domestic-content test to the melting and casting stage, the policy aims to support demand for steel that is genuinely produced from Indian furnaces, not merely finished or assembled in India using imported steel. Simplification of compliance verification: A process-based test such as Melt & Pour can be easier to verify through mill certificates and production records compared to calculating value addition percentages across a supply chain. Alignment with public procurement priorities: The change fits within India's broader public procurement framework that gives preference to domestically manufactured goods in government purchases. Impact on Businesses Below are the benefits, risks, and operational effects this Melt and Pour compliance shift brings for different types of steel businesses. Manufacturers: Steel manufacturers producing goods under the affected HS codes must now demonstrate that their steel was melted and poured in India, and maintain supporting production records, rather than relying solely on value-addition calculations. Importers: The companies importing semi-finished steel or parts and completing processing in India will have to review whether their supply chain continues to remain "domestic" as per the Melt & Pour criterion because even further processing of melted steel imported from outside does not satisfy this requirement. Exporters: Although this regulation applies to the domestic government procurement process and not exportation, the exporters operating domestically within the relevant HS Codes will also have to pay attention to this difference. Brand Owners and OEMs: Companies that source finished steel products under their own brand for supply to government buyers must confirm their vendors' steel meets the Melt & Pour standard for the applicable HS codes. MSMEs and Startups: Fabricators and Manufacturers of Structural Products: Small fabricators and manufacturers of steel products for government contracts need to verify if the raw steel material they use comes from a mill that is melting and casting within India, as this will be a determining factor instead of added value. Large Enterprises: Larger integrated steel producers with in-house melting and casting facilities are likely to find this transition more straightforward, but must still update internal certification processes to reflect the new condition. Traders and Distributors: Trading businesses supplying listed steel products to government buyers need updated compliance declarations from their manufacturing sources to pass on accurate certification. Retailers: Businesses supplying iron and steel articles such as household hardware, sanitary ware, or general iron/steel goods (HS 7317–7326) to government institutions should confirm their supply chain's compliance status under Melt & Pour. Service Providers and EPC Contractors: Contractors executing government infrastructure projects that specify DMI&SP-compliant steel must ensure their material suppliers meet the applicable condition for each HS code used in the project, since a mix of "Melt & Pour" and "50% DVA" codes may apply within the same project. Operational, Legal, Financial and Documentation Impact: Some companies will have to renegotiate their contracts with vendors, change self-certification forms in tender documents, and in some cases re-examine sourcing relations involving imported semi-finished steel. How Businesses Will Achieve Compliance? Below is a step-by-step DMI&SP compliance roadmap to help steel manufacturers and suppliers align with the new Melt and Pour requirement. Identify Applicable HS Codes:  Map your products against the HS codes listed in the revised Appendix-A to determine whether the Melt & Pour condition or the 50% Domestic Value Addition condition applies. Review Supply Chain Origin:  Trace where the steel used in your product is melted and cast, not just where it is processed or assembled. Obtain Mill Certification:  Secure documentation from your steel supplier confirming melt-and-pour origin within India, where applicable. Update Vendor Declarations:  Revise self-certification formats used in government tenders to reflect the correct condition (Melt & Pour or 50% DVA) for each HS code supplied. Maintain Production Records:  Keep records that can demonstrate compliance if questioned during tender evaluation or audit. Segregate Sourcing for Mixed Portfolios:  If your business supplies products across both Melt & Pour and 50% DVA categories, maintain separate documentation trails for each. Review Ongoing Contracts:  Check whether existing government contracts or tenders in progress require updated compliance declarations under the amended Appendix-A. Train Procurement and Compliance Teams:  Ensure teams involved in tender submissions understand the distinction between the two conditions and apply the correct one per HS code. Common Mistakes to Avoid:  Applying the old 50% DVA logic to HS codes that have now moved to Melt & Pour; assuming imported semi-finished steel qualifies simply because further processing happens in India; and submitting outdated certification formats in tender bids. Since HS codes 7304-7307 and 8605-8607 remain on the 50% DVA standard, businesses handling a mixed product range should clearly separate their compliance approach by HS code rather than applying a single rule across their entire catalogue. Benefits for Businesses Below are the benefits businesses can gain by staying compliant with the Melt and Pour requirement under the DMI&SP Policy. Clearer Compliance Test: A process-based Melt & Pour standard can be more straightforward to demonstrate than calculating value addition percentages. Reduced Ambiguity in Tenders: Clearer domestic-origin criteria can reduce disputes during tender evaluation. Market Access: Businesses that genuinely melt and pour steel within India gain a clearer path to qualify for restricted government procurement categories. Support for Backward Integration: Companies with in-house melting and casting capacity may find themselves better positioned compared to those relying on imported semi-finished steel. Business Continuity: Staying updated on the correct condition for each HS code helps avoid last-minute disqualification from government tenders. Right Decision or Additional Burden? Below is a balanced look at whether the Melt and Pour rule works in favour of steel businesses or adds to their compliance burden. Advantages: The rule offers a more direct, verifiable link between "Made in India" claims and actual domestic steel production. For businesses with fully integrated Indian steel-making operations, this can simplify compliance since production records may be easier to maintain than detailed value-addition calculations across multiple supply chain stages. Issues: Firms that rely on imported semi-steel materials as their input, even if there is an appreciable value addition through fabrication and finishing done in India, could be denied the "domestic" status by virtue of this test. Compliance Costs: It takes both time and money to revise one’s documentation, certification process, and possibly supplier sources, especially for companies which have to switch their suppliers to satisfy the Melt & Pour criteria. Business Preparedness: Those firms which are buying their steel products directly from domestic mills equipped with full Melt & Pour facilities would probably adjust easily. Those relying on importing their required steel would take more effort to adapt. Long-Term Impact: Over time, this policy direction may encourage greater investment in domestic steel-melting capacity among businesses seeking continued access to government procurement contracts. Business Opportunities Created Below are the new business opportunities this DMI&SP Policy amendment opens up for domestic steel manufacturers and suppliers. Government Tenders: Businesses that can clearly demonstrate Melt & Pour compliance may find a more level playing field in bidding for government contracts requiring the affected HS codes. Domestic Manufacturing Expansion: The policy may create an incentive for businesses to invest in or partner with domestic melting and casting facilities. Supply Chain Realignment: Companies re-evaluating their sourcing strategy have an opportunity to build stronger relationships with compliant domestic steel producers. Compliance Consulting Demand: As businesses adjust documentation and sourcing to meet the new standard, there is growing need for expert guidance on correctly classifying products, verifying supplier compliance, and preparing tender-ready certification. Why Choose Corpseed? Below is why steel manufacturers and government suppliers across India rely on Corpseed for DMI&SP Policy and Melt-and-Pour compliance support. Understanding exactly which HS codes fall under Melt & Pour versus 50% Domestic Value Addition, and correctly documenting compliance for each, can be time-consuming for businesses focused on their core operations. Corpseed works with manufacturers, traders, and government suppliers to review product classifications against policy requirements, prepare accurate compliance documentation, and support certification and vendor declaration processes needed for tender submissions. Corpseed's team tracks regulatory notifications like this one as they are published, so businesses do not have to monitor gazette updates themselves. From identifying the correct HS code condition applicable to your product, to assisting with documentation and liaison where needed, Corpseed aims to reduce the compliance burden so businesses can focus on winning and executing government contracts rather than navigating paperwork. Support is available across India, with dedicated experts guiding the process from assessment through to submission. Corpseed's Core Message Below is why acting early on this steel policy compliance update can protect your government contract pipeline. Regulatory changes like the Melt & Pour amendment can directly affect your eligibility for government contracts if not handled correctly and on time. Misclassifying your product's compliance condition, or submitting outdated certification, can lead to bid rejection or disqualification during tender evaluation. If your business supplies iron and steel products under the HS codes affected by this notification, it is worth getting your compliance position reviewed before your next tender submission. Getting professional guidance early can help you avoid delays, reduce the risk of penalties for incorrect declarations, and keep your government contract pipeline moving smoothly. Talk to Corpseed's regulatory compliance experts today to review your steel product classification and ensure your DMI&SP Policy compliance is tender-ready.

Subject

Summary: An amendment to the Shops and Commercial Establishments Act has been notified by the Department of Labour and Employment of the Union Territory of Dadra and Nagar Haveli and Daman and Diu. The notification was issued on 15 July 2026 and published in the Official Gazette, Series II No. 26, dated 17 July 2026. The DNH & DD Shops and Establishments Amendment, 2026, proposes three main amendments. First, the Act will apply to all shops and establishments, not to various categories based on employee numbers. Secondly, registration and related functions would be handled through a centralized online portal. Lastly, shops and establishments throughout the Union Territory can operate round the clock, subject to worker safety regulations and government limitations. This document is still a draft. It was issued to collect comments from stakeholders. A shop owner should not treat every proposal in it as a rule that is already in force. Businesses should study the proposal, check the final Gazette, and prepare for possible changes. Notification at a Glance Particular Verified details Issuing authority UT Administration of Dadra and Nagar Haveli and Daman and Diu Department Department of Labour and Employment, Daman Document type Public notice with a draft amendment Regulation Gazette details Official Gazette, Series II No. 26 Reference number LE/LI/DMN/Reforms Act/427/2026/206 Notice date 15 July 2026 Gazette publication date 17 July 2026 Governing law Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019, as adapted to the Union Territory Area covered Dadra and Nagar Haveli and Daman and Diu Main stakeholders Shop owners, commercial establishments, employers, workers and compliance teams Main proposals Wider coverage, online registration, deemed registration in some cases, combined registration provisions and 24x7 opening Consultation period Comments may be sent within 30 days of the issue of the notice Proposed commencement From publication of the final Regulation in the Official Gazette, as stated in the draft commencement clause Legal status Draft published for stakeholder comments not presented here as final enacted law The date point needs care. The notice carries 15 July 2026, while the Gazette carries 17 July 2026. It asks for comments within 30 days of the “issue of this notice,” but does not explain which date must be used to count the period. A stakeholder planning to comment should confirm the deadline with the Labour Department and avoid waiting until the last day. The Existing Regulatory Framework The Gujarat Shops and Establishments Act, 2019 The draft seeks to amend the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019, as adapted to Dadra and Nagar Haveli and Daman and Diu. This law deals with shops and other commercial establishments. It covers subjects such as registration, business hours and conditions of work. In simple words, a shops and establishments law sets basic rules for commercial workplaces. The legal definitions in the governing law still decide whether a business is covered. Application in Dadra and Nagar Haveli and Daman and Diu The 2019 Gujarat law has been adapted for this Union Territory. The proposal would amend that adapted law only within Dadra and Nagar Haveli and Daman and Diu. It is not a nationwide amendment. The draft uses “State Government,” so the final framework should make clear which UT authority exercises each power. Existing Registration Framework The comparison statement in the Gazette shows different treatment based on the number of workers. It states that most provisions apply to establishments with 20 or more workers, while Section 7 applies to establishments with fewer than 10 workers. Under Section 7, a smaller establishment gives an intimation and receives an intimation receipt. The wording for employee number contains an apparent gap and is discussed under “Drafting Issues” below. Existing Opening and Closing Hours The comparison table shows location-based hours. Certain municipal locations, highways, bus station premises, hospital premises, and petrol pumps may remain open 24 hours a day. Other areas have closed periods such as 2 a.m. to 6 a.m. or 11 p.m. to 6 a.m. The proposal would replace these groups with a single general rule while retaining the government's power to restrict hours. Scope and Applicability of the Draft Regulation Territorial Application The draft would apply only within Dadra and Nagar Haveli and Daman and Diu. Businesses and Establishments Covered The proposed Section 1(3) says that the Act shall apply to “all shops and establishments.” If this wording is retained in the final Regulation, worker count would no longer decide whether the Act applies. A very small shop could enter the same main legal framework as a larger establishment. Definitions and exemptions in the principal Act may still matter. The draft does not list every covered business type. Impact on Small Establishments Small establishments are likely to see the clearest change. The separate intimation system under Section 7 would be removed. The proposal instead places registration in the rewritten Section 6. A small employer may therefore receive a registration certificate rather than only an intimation receipt. A small business would still need correct details, self-certified documents and compliance with later rules on forms and fees. Existing and Newly Commencing Establishments The proposed Section 6 provides 60 days from the commencement or start of business, as applicable. A valid registration under the Goa, Daman and Diu Shops and Establishments Act, 1973 would continue until expiry. Certain OSH Code, municipal and panchayat registrations would receive deemed status. Special Categories Requiring Prior Approval Most certificates are proposed to be auto-generated through the online portal. The draft creates an exception for: Slaughterhouses Meat-processing units Meat-selling units Poultry farms Abattoirs These businesses would need prior approval. The draft does not identify the competent authority or approval procedure. What Has Changed Under the Draft Regulation? The proposal broadens coverage and consolidates several related processes into Section 6. It also removes location-based limits from the main opening-hours rule. Compliance area Existing position shown in the Gazette Proposed position Practical business meaning Applicability Different rules based on worker numbers Act would apply to all shops and establishments Small businesses may enter the full registration system Small establishments Intimation under Section 7 for fewer than ten workers Section 7 would be omitted Separate intimation route would end Registration Inspector registers and issues certificate Certificate normally auto-generated online Less manual approval for most businesses Other registrations No deemed-registration rule shown in existing Section 6 Certain OSH Code and local registrations recognised May reduce duplicate filings Changes in details Separate Section 9 Moved into Section 6 Online application and fresh certificate proposed Closure Separate Section 10 Moved into Section 6 Online notice within 30 days proposed Cancellation Separate Section 8 Moved into Section 6 Inspector keeps power to cancel fraudulent registration Certificate validity Valid until ownership or business nature changes Same basic validity wording No routine renewal period is stated in the draft Opening hours Depend on location General 24x7 opening proposed Wider choice of operating hours Penalty Section 7 shows a ₹5,000 fine for its contravention Section 6 proposes a ₹5,000 penalty Common penalty provision would apply to Section 6 breaches Amendment to Section 1: Application to All Establishments The proposed wording says the Act will apply to all shops and establishments. It removes the employee-number language from Section 1(3), although the reasons column mentions ten or more employees. Substitution of Section 6: Unified Registration Framework The new Section 6 would cover registration, changes, closure and cancellation. The prescribed application would include a self-declaration, self-certified documents, the fee, and basic details about the employer, manager, business, and workers. For most businesses, the certificate would be generated online. Omission of Sections 7 to 10 Sections 7 to 10 would be removed. Their subjects would not all disappear: changes, closure and cancellation would move into Section 6. Substitution of Section 35: Proposed 24x7 Operations Any shop or establishment may remain open 24 hours, subject to Sections 12, 14, 16 and 18, and to notified limits relating to traffic, health, safety, nuisance or law and order. Implementation Timeline and Compliance Norms Event or requirement Date or period Affected entity Action Public notice 15 July 2026 Stakeholders Review the proposal Gazette publication 17 July 2026 Public and businesses Note the consultation draft Stakeholder comments Within 30 days of issue of the notice Interested stakeholders Send comments to the named Labour authority Final commencement On publication as provided in the final Regulation Covered establishments Check the final Gazette before acting Registration Within 60 days from commencement or business start, as applicable Employer of a covered establishment Apply in the prescribed form Change in particulars Period to be prescribed Employer Apply online and pay prescribed fee Closure Within 30 days of business closure Employer Submit online closure intimation Stakeholder Consultation Period Comments may be sent to the Commissioner-cum-Secretary (Labour) at the address in the notice. Because the notice and Gazette show different dates, stakeholders should confirm the last date directly. Proposed Commencement The draft links commencement to Gazette publication. The July document is expressly a consultation draft and should not be confused with a final Regulation. Registration, Change and Closure Periods Registration is proposed within sixty days and closure reporting within thirty days. Amendment periods, forms, fees and detailed portal procedures would be prescribed later. Why Was the Amendment Proposed? The notice links the proposal with labour reform, easier compliance and changing business conditions in the Union Territory. Simpler Digital Registration An online certificate based on self-certified records may reduce the time required for routine approval. Less Duplicate Compliance Recognition of OSH Code and local registrations may reduce duplicate filing. Its value will depend on portal verification. One Place for Related Tasks Registration, changes, closure, and cancellation would be grouped in one section. This can make the law easier to follow because employers would not need to navigate several separate sections for related events. Flexible Business Hours The proposed 24x7 rule responds to businesses that serve customers beyond normal daytime hours. It also removes different time bands based mainly on location. Worker protections and government restrictions would remain important limits. Proposed Registration and Compliance Framework 1. Application and Self-Certified Records The prescribed application would contain employer, manager, establishment, business and worker details, supported by a self-declaration and self-certified documents. The applicant confirms a self-certified copy as true. False records or the concealment of material facts could lead to cancellation. 2. Deemed Registration Eligible OSH Code, municipal and panchayat registrations would be treated as registrations under this Act. The draft does not explain how a business will prove this deemed status on the portal. 3. Updating Registration Details For changes to details, the employer would apply online, pay the prescribed fee, and obtain a fresh certificate. Special categories would still need approval. 4. Closure and Cancellation Closure would be reported online within thirty days. The Inspector may also remove a business that has closed without reporting it. A registration obtained through false information, forged documents, hidden facts, or fraud may be cancelled, but the employer must first be given a hearing. 5. Validity and Penalty The certificate would remain valid until ownership or the nature of business changes. The draft proposes a ₹5,000 penalty for violating Section 6 or the rules made under it. It does not clearly explain whether the amount applies once, per breach, or in another manner. Proposed 24x7 Operation of Shops and Establishments Which Establishments May Remain Open? The proposed Section 35 uses broad language. It says any shop or establishment in the Union Territory may remain open 24 hours on any day of the week. This would replace the current location groups shown in the comparison table. Business Hours Are Not Employee Working Hours A shop can stay open by using different shifts. That does not mean one worker can be made to work all day or all night. The draft keeps Sections 12, 14, 16 and 18 in place for workers. Because the full text of those sections is not reproduced in this Gazette, their exact requirements should be checked in the principal Act. Government May Reduce Hours The 24x7 permission would not be absolute. A notified authority could reduce opening hours for a class of establishments, a mall, certain premises or an area. Reasons may include traffic, public health, public safety, public nuisance and law and order. Businesses should therefore watch later Gazette notifications even after any final amendment takes effect. Impact on Businesses Micro and Small Establishments Small shops may move from a lighter intimation route to registration. They must provide correct details, use the portal and report changes. Existing Registered Businesses Earlier Goa, Daman and Diu registrations may continue until expiry. Certain OSH Code and local registrations may receive deemed status, subject to the final law. Retail, Food and Service Businesses Longer hours can help customer-facing businesses but may increase staffing, power, security, and transport costs. Opening for 24 hours is a choice, not a duty. Logistics and Support Operations Logistics and support operations may benefit from extended hours, but other sector, safety, and labour rules will still apply. Stakeholder Immediate impact Possible cost or operational effect Priority concern Small shop Possible shift from intimation to registration Filing and record effort Confirm coverage and final rules Existing registrant Review current certificate Low if recognised Check validity and deemed status 24x7 operator More freedom to choose hours Staffing, safety and utility costs Protect workers and monitor restrictions Special approval business Cannot rely on auto-generation alone Approval time and documents Identify competent authority HR or compliance team More online records and updates Process and training needs Keep data accurate How Can Businesses Achieve Compliance? Because this is a draft, the first duty is to monitor, not assume, that the new process is already live. Check coverage: Decide whether the workplace falls within the legal meaning of a shop or establishment. Review current certificates: Record the law, authority, number, validity and expiry date for every registration. Look out for deemed status possibilities: Note down OSH code and municipal or panchayat registrations that might fall under deemed status. Ensure accurate information about your business: keep your employer, manager, address, activity, and number of workers up to date. Look out for the final Gazette: Get to know the exact terms of the law, the act's start date, forms, fees, and the online portal. File the application within the stipulated time: If it passes as a law and needs registration, file the application within sixty days from the start date. File amendments: File amendments within the time prescribed by the final law. Control working hours: If working overtime, ensure you have sufficient staffing and adequate worker protection. Inform regarding closure: Propose an online notice within thirty days of closure. Compliance Checklist for Businesses Compliance point Type Timing Responsible function Check applicability Recommended preparation Now and after final publication Owner or legal team Review existing registration Recommended preparation Before commencement Compliance team Submit online registration Proposed legal duty Within applicable 60-day period Employer Verify declaration accuracy Proposed legal duty and internal control Before every filing Employer and compliance team Update changed details Proposed legal duty Period to be prescribed Employer Follow worker protections Continuing legal control During all operating hours HR and operations Report closure Proposed legal duty Within 30 days of closure Employer Monitor Gazette notices Recommended control Ongoing Legal or compliance team Benefits for Businesses Faster routine registration: Most certificates would be generated through the online portal without prior approval. One digital record: Registration, changes and closure would use the same broad framework. Fewer duplicate registrations: Certain OSH Codes and local registrations would be recognised. Wider operating choice: Businesses could choose hours that match customer demand. Long certificate life: No routine renewal period is stated; validity continues until ownership or business nature changes. Reduced location differences: The same main 24x7 rule would apply across the Union Territory. These are possible benefits, not guaranteed savings. Other licences and labour duties may still apply. Challenges and Additional Compliance Burden Wider Coverage of Small Businesses Applying the Act to all establishments may place registration work on very small shops, even with auto-generation. Missing Process Details Forms, fees, amendment periods, and portal steps are left to later rules, so the full cost is not yet clear. Workforce Cost for Longer Hours Longer hours may require more shifts, managers, security personnel, and support staff. A business should open late only when the expected demand justifies the extra cost. The proposal gives a choice; it does not promise profit. Digital and Data Risks An online system works well only when it is stable and simple. Wrong entries can create future problems, especially because the Inspector may cancel registration obtained through false information or hidden facts. Is This the Right Decision or an Additional Burden? Why It May Be Business-Friendly This proposal strips away routine approval for almost all registration certificates. This proposal consolidates similar provisions while accepting some other forms of registration. This proposal also offers greater flexibility in terms of business operating hours. Why It May Add a Burden Small businesses can transition from the light hint system into the registration process. The business owner is expected to use the portal and ensure the information is up to date. Increased time for operations will lead to higher labor and operational costs. Balanced Assessment This policy is justified because of the trade-off between manual authorization and online self-declaration and registration. However, for the process to be fair, the rules must be straightforward, and the fees low. Additionally, there must be an effective portal, and the small businesses must be properly guided. The proposed policy can thus be regarded as both an opportunity and a matter of compliance. It cannot automatically be seen as a burden, because 24x7 operation is not mandatory. The burden will arise if the forms, fees, or portal processes are difficult for small-business employers. Business Opportunities Created Night Retailing and Food Services: Stores, eateries, and kitchen deliveries can stay open for longer hours. Last Mile Logistics: Longer business hours can help with late pickups and deliveries. Warehousing: Operators may plan more shifts and use space for longer periods. Hospitality and tourism: Visitors may get wider access to food, retail, and support services. Customer support: Service businesses may offer round-the-clock help where demand exists. Security and transportation: Additional night shifts may require secure locations and employee movement. HR and payroll systems: There may be a requirement for more detailed records regarding shifts, attendance, and payments. Regulatory support: Smaller firms may seek Shops and Establishment registration services. Drafting Issues and Areas Requiring Clarification "All Establishments" Vs Ten Or More Employees The clause suggested implies that the Act would apply to all shops and establishments. The reasons column mentions ten or more employees. Both clauses cannot be regarded as the same. The final draft must eliminate this confusion. Gap in Number of Workers in Existing Law The comparative statement includes the general provision for twenty or more workers and Section 7 for less than ten. There is no mention of 10 to 19 workers in the context above. Deemed Registration Process The proposal grants deemed registration but does not say whether a business must upload its existing certificate, obtain a portal number, or send an intimation. Forms, Fees and Time Periods The draft refers to prescribed forms, fees and a prescribed amendment period. Exact values and procedures are not stated. Ownership and Business Changes The certificate remains valid until ownership or the nature of business changes. The amendment provision also allows a fresh certificate upon change of particulars. The final rules should explain when an amendment is enough and when a completely new registration is needed. Competent Authority and Penalty The special approval authority is not named. The ₹5,000 penalty provision also does not explain how it applies to multiple or ongoing breaches. How Can Corpseed Help? Corpseed can support businesses preparing for the proposed framework through: Applicability assessment for shops and commercial establishments Review of existing registration certificates Assessment of possible deemed-registration status Shops and Establishments registration services Online application and document-filing support Assistance with changes in registration particulars Closure-intimation support Labour law compliance services and compliance-gap review Monitoring of the final Gazette and implementing rules Final forms and fees will depend on the rules as notified. Support can help businesses prepare accurate records. Corpseed's Core Message The firms operating in Dadra and Nagar Haveli and Daman and Diu should see the proposed document for 2026 as significant, but not yet law. What needs to be done is to review the current registration to identify any deficiencies, maintain accurate business and employee records, and track the latest Gazette. Corpseed helps employers interpret regulations, make online submissions, and register under the Shops and Establishments Act. Firms that the regulation may cover can obtain assistance with the document at hand. Key Takeaways The DNH and DD Shops and Establishments Amendment 2026 is a draft that has been published for stakeholder comments. It proposes to apply the Act to all shops and establishments in the Union Territory. Registration certificates would normally be generated through an online portal. Some OSH Code, municipal and panchayat registrations may receive deemed status. Registration would generally be required within sixty days under the proposed rule. Business closure must be reported within 30 days. Shops and establishments could remain open 24x7, but workers would remain protected by the Act. The government could restrict opening hours for safety, health, traffic, nuisance or law-and-order reasons. Businesses should wait for and review the final Gazette before treating the proposal as enforceable law.

Subject

Summary: The Securities and Exchange Board of India (SEBI) has brought about significant changes in how it performs inspections on market intermediaries such as stock brokers, Depository Participants (DPs), Investment Advisers (IAs) and Research Analysts (RAs). Under PR No. 44/2026, dated 7th August 2026, SEBI has stated that it will be revamping its inspection mechanism for market intermediaries beginning from the Financial Year 2026-27. For every entity that is involved in the securities market, this development will have significant implications in terms of how often SEBI will conduct inspections on them, what triggers inspections, and what will be considered SEBI compliance in this case. If you are a stock broker, a Depository Participant, an Investment Adviser, or a Research Analyst registered with SEBI, this particular update is one that cannot afford to be ignored. On the one hand, SEBI has made changes to the inspection regime, which means that inspections will now happen much less frequently, provided that you comply with SEBI requirements. Still, on the other hand, SEBI has also introduced a very risk-based approach, which means that you may end up being flagged by SEBI much faster. Having the right SEBI compliance structure in place will be crucial. In this compliance update, we break down the SEBI notification in simple language, explain what has changed, who it affects, and what businesses should do next to stay compliant. Key Highlights (Bullet Points) Before going into the details, here is a quick summary of what SEBI's new inspection framework for market intermediaries actually says. These key highlights capture the core changes announced in PR No. 44/2026 for stock brokers, DPs, IAs, and RAs. SEBI has issued PR No. 44/2026 titled "SEBI streamlines inspection of market intermediaries," dated August 7, 2026, from Mumbai. SEBI is mandating joint inspection of Stock Brokers and Depository Participants by Stock Exchanges and Depositories. The new approach was finalised based on deliberations with Market Infrastructure Institutions (MIIs) and the Supervisory Body for IAs/RAs. The enhanced inspection approach comes into effect from Financial Year 2026-27. SEBI is adopting a dynamic, risk-based approach using new risk parameters to identify and shortlist entities for inspection. The overall objective is to strengthen regulatory oversight while improving the Ease of Doing Business for intermediaries. The number of inspections SEBI conducts in FY 2026-27 has been rationalised to nearly one-third of the inspections carried out in the previous financial year. This reduction accounts for the regular inspections already being conducted by Stock Exchanges and Depositories on brokers, DPs, IAs, and RAs. Repetitive annual comprehensive inspections of compliant entities, especially Qualified Stock Brokers (QSBs), are being discontinued. Entities that repeatedly appear across shortlisting parameters, carry high risk scores, or trigger multiple alerts will continue to be prioritised for inspection. Entities holding multiple intermediary registrations will now be inspected jointly by different SEBI departments wherever feasible, cutting down the number of separate visits. SEBI will give greater weightage to alerts from Exchanges, complaints, and social media to flag recent instances of possible violations, with shortlisting done on a quarterly basis. Inspections will also be triggered by market intelligence and references, including inputs from Regional Offices (ROs) and Local Offices (LOs), covering themes such as technical glitches, cyber incidents, and Authorised Persons of stock brokers. The Regulatory Framework For better understanding of this update, knowledge about who SEBI is and its function would be helpful. The Securities and Exchange Board of India (SEBI) is the regulatory body that controls the Indian securities market. SEBI monitors all market participants, including stock brokers, Depository Participants, Investment Advisers, and Research Analysts, in order to protect investors and maintain fair trade. The market intermediaries can be defined as those organizations that act as an intermediary between investors and the securities market. These include stock brokers that help you execute trades, Depository Participants who keep your securities in dematerialised form, Investment Advisers that help in taking decisions regarding investments, and Research Analysts who provide analysis and recommendations on securities. Market Infrastructure Institutions (MIIs) refer to Stock Exchanges, Depositories, and Clearing Corporations. These are the entities that operate the core infrastructure of the securities market. SEBI regularly consults MIIs because they already conduct their own inspections of intermediaries and have first-hand data on compliance behaviour. The Supervisory Body for IAs/RAs is the body responsible for oversight of Investment Advisers and Research Analysts on SEBI's behalf, under the supervisory framework SEBI has put in place for these categories of intermediaries. According to the press release, this new inspection approach was finalised after deliberations between SEBI, the MIIs, and the Supervisory Body for IAs/RAs specifically on the planning and conduct of joint inspections. The purpose of this exercise was to improve the way SEBI inspects intermediaries by making the process more efficient, data-driven, and less repetitive for entities that are already being monitored by Exchanges and Depositories. Here is the scope of this SEBI inspection update, based on the categories of intermediaries specifically named in the press release: Stock Brokers Depository Participants (DPs) Investment Advisers (IAs) Research Analysts (RAs) Qualified Stock Brokers (QSBs), specifically What Has Changed? SEBI's press release outlines a clear shift from a largely routine, calendar-based inspection cycle to a dynamic, risk-based inspection model. Below is a simple comparison of what is changing. Aspect Earlier Approach   Inspection Frequency Repetitive, largely comprehensive annual inspections for most entities, including compliant ones   Compliant Entities (incl. QSBs) Subject to repetitive annual comprehensive inspections   Basis for Shortlisting Largely routine/periodic selection   Entities with Multiple Registrations Inspected separately by different SEBI departments   Role of Alerts/Complaints Considered as part of the process   Trigger for Inspection Primarily scheduled inspections   Role of Exchanges/Depositories Conduct their own inspections separately from SEBI   If your firm has been maintaining a good record of compliance, then there is less likelihood that SEBI will conduct an annual inspection of your entire organization. But if your company finds its name repeatedly in the list of risk factors, gets more than one complaint, or is tied up with an alert issued by the Exchanges or with cyber incidents/Authorised Person. You will definitely be inspected, and the inspection process is conducted quarterly rather than annually. Implementation Timeline / Norms Here are the key dates and applicability norms businesses should note under this SEBI inspection update for market intermediaries. Effective From: Financial Year 2026-27 Date of Notification: August 7, 2026 (PR No. 44/2026), issued from Mumbai Shortlisting Frequency: Quarterly, based on alerts, complaints, and risk scores Applicability: Stock Brokers, Depository Participants, Investment Advisers, Research Analysts, and specifically Qualified Stock Brokers (QSBs) Transition Requirement: No separate transition requirement is indicated within the press release; the improved method is stated as being effective from the beginning of FY 2026-27 Required Action for Businesses: Intermediaries need to consider their internal risk triggers, complaint handling mechanisms, and coordination to conduct joint inspections between Exchanges and Depositories, as this new system is currently effective for the present financial year. Why Was This Implemented? Based on the press release, SEBI's objective behind this change is to strengthen regulatory oversight of market intermediaries while simultaneously improving Ease of Doing Business. These two goals may sound contradictory, but SEBI has tried to balance them through a smarter, data-backed inspection system rather than simply increasing or decreasing inspection frequency across the board. The key reasons behind this move, as stated in the notification, include: Reducing duplication: Stock Exchanges and Depositories already inspect brokers and DPs regularly. SEBI recognised this and adjusted its own inspection targets accordingly, rather than duplicating the same oversight. Rewarding compliance: Entities with a consistently clean track record, especially QSBs, no longer need to go through repetitive comprehensive inspections every single year. Sharper risk detection: By using dynamic risk parameters and reviewing alerts on a quarterly basis, SEBI can respond faster to entities showing early signs of trouble, instead of waiting for an annual review cycle. Coordinated supervision: For intermediaries holding multiple registrations, joint inspections by different SEBI departments cut down on repeated visits and make the process more efficient for both SEBI and the entity being inspected. Responding to real-world signals: By factoring in market intelligence, complaints, social media alerts, technical glitches, and cyber incidents, SEBI is aligning its inspection triggers with actual, current risk signals rather than only a fixed schedule. Impact on Businesses Stock Brokers: Stock brokers, especially those already inspected by Stock Exchanges periodically, will face fewer SEBI-led thorough inspections if they have a good track record of compliance. But stock brokers who are associated with any complaint, any technological problem, any cyber-attack, or any problem related to an Authorised Person should be ready for rigorous and speedy inspection, as these have been specified as inspection criteria. The Depository Participants (DPs) will now undergo inspection in conjunction with Stock Exchanges and Depositories, as opposed to SEBI-only inspection. Thus, the DPs are expected to be ready for the joint inspection process. Investment Advisers (IAs) and Research Analysts (RAs): The Supervisory Body for IAs/RAs was directly involved in shaping this new approach, indicating that IAs and RAs will also be assessed using the same dynamic, risk-based shortlisting method. Advisers and analysts with strong compliance records may see fewer routine inspections, while those linked to complaints or alerts will face quicker follow-up. Qualified Stock Brokers (QSBs) are specifically named in the notification. Since repetitive annual comprehensive inspections for compliant QSBs are being discontinued, well-managed QSBs stand to benefit the most from reduced inspection frequency, provided they continue to maintain a strong risk profile. MSMEs and Start-ups That Act as Intermediaries: Small intermediaries that act as brokers, Depository Participants, Intermediary Accounts, or Recognized Accounts benefit from decreased routine inspections in case of compliance, but have to be very careful about complaints and risk factors because the presence of just a few of those will lead to quick inspections during the quarter shortlisting process. Entities with Multiple Registrations: Businesses registered as more than one type of intermediary (for example, a broker also registered as a DP) will now be inspected jointly by SEBI departments wherever feasible. While this reduces the total number of separate visits, it also means all relevant records across every registration category need to be consistently maintained and readily available. How Businesses Will Achieve Compliance? Since the new framework is risk-based and alert-driven, intermediaries need a proactive compliance approach rather than a "wait for the annual inspection" mindset. Here is a practical roadmap: Check Registration Records: Verify your SEBI registration details as well as those of all categories you are registered in (broker, DP, IA, RA). Internal Documentation: Keep your transaction, customer agreement, KYC, and correspondence documentation clean. Create a Complaint Monitoring System: Due to complaints and Exchange notifications now directly impacting shortlisting for each quarter, companies need to monitor and solve any complaints from their customers in a formal manner. Internal Check of Risk Indicators: Check periodically on your own for any possible risk indicators like technical issues, trading patterns, or Authorised Person activity. Prepare for Joint Inspections: DPs and brokers should coordinate internal teams so that documentation is ready for joint review by SEBI, Exchanges, and Depositories simultaneously. Maintain Cyber and Technical Readiness: Since cyber incidents and technical glitches are explicitly mentioned as inspection triggers, businesses should invest in strong IT controls and incident-reporting mechanisms. Track Authorised Persons Closely: Stock brokers should closely monitor the conduct of their Authorised Persons, as issues linked to APs are specifically flagged as an inspection theme. Undergo Periodic Internal Audits: Regular internal compliance audits help identify gaps before they surface during a SEBI, Exchange, or Depository review. Stay Updated on Quarterly Shortlisting Criteria: Since shortlisting now happens every quarter, businesses should treat compliance as an ongoing activity, not a once-a-year task. Maintain Renewal and Reporting Timelines: Ensure all periodic reporting and renewal obligations under existing SEBI regulations are met without delay, since lapses can contribute to a poor risk profile. Common Compliance Mistakes to Avoid Many businesses lose their good compliance standing not because of major violations, but because of small, avoidable gaps. Here are the common SEBI compliance mistakes intermediaries should watch out for: Treating compliance as a once-a-year, pre-inspection activity instead of an ongoing process Ignoring or delaying resolution of client complaints Poor coordination between broker and DP functions when the same entity holds both registrations Weak monitoring of Authorised Persons' conduct Inadequate cyber-security and technical incident reporting mechanisms Incomplete or outdated documentation that is not audit-ready at short notice Because shortlisting is now based on a rolling quarterly review, businesses should not assume that "no inspection last year" means they are off SEBI's radar. A single quarter with unresolved complaints or a technical glitch can change your risk profile quickly. Benefits for Businesses SEBI's streamlined, risk-based inspection framework brings several practical benefits for compliant market intermediaries. Here are the key benefits businesses can expect: Reduced Inspection Burden: Compliant entities, especially QSBs, will face fewer repetitive comprehensive inspections. Lower Compliance Fatigue: Reduced duplication with Exchange and Depository inspections means less repeated paperwork and fewer redundant visits. Improved Ease of Doing Business: A more efficient inspection process, as intended by SEBI, allows businesses to focus more on operations and less on repeated regulatory visits. Fewer Visits for Multi-Registered Entities: Joint inspections by SEBI departments reduce the total number of separate inspection visits for entities holding multiple registrations. Faster Recognition of Good Compliance: A dynamic, risk-based system rewards businesses that consistently maintain low risk scores and clean records. Better Alignment with Market Realities: Since inspections are also based on market intelligence and real-time alerts, well-managed entities benefit from a system that focuses scrutiny where it is actually needed Right Decision or Additional Burden? From a business perspective, this update leans largely positive, but it is not without its own demands. Here are the advantages this update brings for market intermediaries: Advantages: Genuine reduction in repetitive inspections for compliant entities and QSBs Recognition of existing inspections already conducted by Exchanges and Depositories More predictable, data-driven approach to regulatory scrutiny Fewer duplicate visits for entities with multiple registrations At the same time, businesses should be aware of the challenges this new compliance framework brings: Challenges: Businesses now need continuous, quarter-on-quarter compliance monitoring rather than periodic preparation. Complaint handling, cyber-incident reporting, and Authorised Person oversight need to be tightened, since these can trigger faster scrutiny. Joint inspections require better internal coordination between different functions (broking, depository operations, etc.) Entities with weaker risk-monitoring systems may find it harder to anticipate when they will be shortlisted. Compliance Costs and Business Readiness: While the frequency of full inspections may reduce for many businesses, the need for internal systems, such as complaint tracking, cyber-security monitoring, and documentation readiness, becomes more important on an ongoing basis. Businesses that already have strong internal compliance systems will find this transition smooth. Those relying on last-minute, pre-inspection compliance efforts will need to restructure their approach. Long-Term Impact: Over time, this shift is likely to push the market toward a stronger internal compliance culture, since the cost of non-compliance (through faster, alert-driven scrutiny) is now higher than before, even as the frequency of routine inspections goes down. Business Opportunities Created Beyond regulatory relief, this SEBI update also opens up new business opportunities for compliant market intermediaries. Here is how businesses can benefit: Stronger Market Reputation: Entities that consistently maintain low risk scores can use their compliance record as a trust signal for clients and business partners. Improved Operational Efficiency: Reduction of duplicate inspections allows managers to devote their time to growth and serving clients. Opportunities for Growth: QSBs or intermediaries that are well-managed and have a good compliance history might be able to grow their operations, make more registrations or increase their client base without much regulatory hassle. Increasing Demand for Compliance Technology: Moving to risk scoring, alerts and shortlisting on a quarterly basis would make it important to have the technology for compliance internally. Increasing Demand for Professional Compliance Assistance: With the increased dynamism of the framework, there is a greater need for professional assistance for interpreting risk criteria, documentation and being inspection-ready. Why Choose Corpseed? Navigating SEBI's evolving, risk-based inspection framework requires more than just understanding the notification it requires consistent, ongoing compliance management. This is where Corpseed can support your business. Corpseed offers end-to-end regulatory compliance support for businesses registered as stock brokers, Depository Participants, Investment Advisers, and Research Analysts. The team helps with documentation assistance, coordination for regulatory filings, and structured compliance record-keeping so your business stays prepared regardless of when a review or inspection is triggered. With experienced regulatory consultants who understand SEBI's processes, Corpseed helps businesses set up systems for complaint tracking, documentation readiness, and internal compliance checks- the exact areas that now directly influence how SEBI shortlists entities for inspection. Corpseed's pan-India support model, transparent process, and dedicated compliance experts mean businesses do not have to interpret complex regulatory updates on their own or scramble to organise records when a joint inspection is announced. Whether you need help understanding how this update applies to your registration category or want ongoing support to keep your compliance framework audit-ready, Corpseed's team is positioned to guide you through it with a quick turnaround and a clear, transparent process. Corpseed's Core Message Regulatory frameworks like this one are designed to reward businesses that stay compliant consistently, not just before an inspection. But keeping up with quarterly shortlisting criteria, risk parameters, complaint resolution timelines, and joint inspection readiness can be difficult to manage internally, especially for MSMEs, startups, and growing intermediaries. Rather than risk penalties, delays, or unexpected scrutiny, businesses should consider getting expert compliance support in place now. Corpseed's regulatory consultants can help you review your current compliance posture, close documentation gaps, and build a system that keeps your business inspection-ready throughout the year, not just once a year. Don't wait for an alert or complaint to reveal a compliance gap. Get in touch with Corpseed today to strengthen your SEBI compliance framework and stay ahead of the new inspection norms. Conclusion The choice of SEBI to streamline the process of market intermediary inspection by PR No. 44/2026 implies a transition to a smarter, risk-based approach that is non-repetitive and will start working from FY 2026-27 onwards. For those stock brokers, Depository Participants, Investment Advisers, and Research Analysts (QSBs) who do not face any issues regarding compliance, this will imply fewer repetitive comprehensive inspections. However, a new quarterly shortlisting mechanism, based on risk scores, alerts, complaints, and market intelligence, implies that businesses have to view compliance as a continuous process. The main message for businesses is clear – a lower frequency of inspections does not mean less compliance responsibility. On the contrary, businesses have to make sure that they are always compliant and keep responding to alerts and complaints. If your business operates as a stock broker, DP, IA, or RA and you want to ensure your compliance framework is ready for this new SEBI approach, Corpseed's regulatory experts can help you review your current standing, close compliance gaps, and build a system that keeps your inspection-ready throughout the year. Contact Corpseed today to get started.

Subject

Summary: The Drugs (Twelfth Amendment) Rules, 2026, have been notified by the Ministry of Health & Family Welfare. These rules modify Rule 89 of the Drugs Rules, 1945. The rule came into force on 7 August 2026. According to the Drugs Rule 89 Amendment 2026, the manufacturing licenses for ten forms will be included in the list of acceptable manufacturing license forms for drugs produced solely for examinations or tests. Previously, Forms 25 and 28 were the only forms listed under Rule 89. These include license forms for loan purposes, Schedule X, vaccines, sera, LVP, recombinant DNA substances, blood products, and umbilical cord blood stem cells. This does not mean that Form 29 has been removed. A business may still need Form 29 if its existing manufacturing license does not cover the drug concerned. The exact words "in respect of such drugs" remain central to the rule. Manufacturers should therefore check the license form, approved products, site, and proposed activity before starting a test batch. The Regulatory Framework Drugs and Cosmetics Act, 1940 The Drugs and Cosmetics Act, 1940, is the primary law governing drug regulation in India. The notification states that the Central Government used the rule-making powers given by sections 12 and 33 of the Act. The final rules were made after consultation with the Drugs Technical Advisory Board. The Board gives technical advice to the Central and State Governments on matters arising from the administration of the Act. Drugs Rules, 1945 These procedures are explained in the Drugs Rules, 1945. Rule 89 is found in Part VIII of the said rules entitled "Manufacture for Examination, Test or Analysis." Part VIII deals with small quantities made for limited technical purposes. Rules 87 and 88 cover labels. Rule 89 decides when Form 29 is needed. Rules 90 to 93 cover its application, duration, conditions, and cancellation. Meaning of Form 29 Form 29 is a license to produce particular drugs for examination, testing, or analysis purposes. Form 29 is not a general manufacturing permit. The manufactured drugs can be used only for this particular purpose. Under Rule 90, an application for Form 29 is made in Form 30 to the State Licensing Authority. It must be made or countersigned by the head of the institution or a director of the firm or company. The stated fee is Rs. 250. Rule 91 states that Form 29 normally remains in force for three years from its date of issue unless canceled sooner. It may then be renewed for one year at a time. These are existing provisions that were not amended. Background of the Regulatory Development Earlier Position Under Rule 89 Before this amendment, a person had to obtain Form 29 for test manufacture if the person did not hold Form 25 or Form 28 in respect of that drug. Other forms for loan licenses and special products were not expressly named, creating possible uncertainty. Draft Notification and Public Consultation The draft amendment was published on 21 April 2026, and it became available on 22 April 2026. Thirty days were allotted for objections and suggestions. In the last notification, the comments were acknowledged to be considered. Final Notification The final Drugs (Twelfth Amendment) Rules, 2026, were notified on 6 August and published on 7 August 2026. They came into force on publication. The final text includes Form 28E. The earlier draft text available through the Central Drugs Standard Control Organization did not appear to include Form 28E in its operative list. This is a material point when comparing the draft with the final notification. Businesses must follow the final notified text. What Has Changed? Old and New Position Compliance area Earlier position New position from 7 August 2026 Business meaning License forms named in Rule 89 Form 25 and Form 28 Ten manufacturing license forms More license categories are expressly recognized Loan licenses Not expressly named Forms 25A, 28A, and 28DA are named Loan-licensees receive clearer treatment Schedule X categories Limited express coverage Forms 25F and 28B are named Schedule X manufacturers are expressly addressed Vaccines and specialized biological products Form 28D not named Forms 28D and 28DA are named Specialized and loan-license units are covered Blood products Form 28E not named Form 28E is included Blood-product manufacturing is expressly recognized Umbilical cord blood stem cells Form 28F not named Form 28F is included Cord blood stem-cell establishments are expressly recognized The amendment substitutes the earlier words "Form 25 or Form 28" with a longer list. The new list covers Form 25, Form 25A, Form 25F, Form 28, Form 28A, Form 28B, Form 28D, Form 28DA, Form 28E, and Form 28F. What Has Not Changed The amendment does not remove the Form 29 assessment. It expands the forms considered during that assessment. It also does not: Permit commercial sale of drugs made under Form 29, Add a new drug to an existing manufacturing license, Expand an approved manufacturing site, Replace a product permission, new-drug approval, or other approval that may apply, Change Form 30 or the stated application fee, Change the three-year duration stated in Rule 91, Remove labelling, recordkeeping, inspection, or Inspection Book duties, or Create an express transition period for pending applications. License Forms Covered by Amended Rule 89 Each form covers a different permission. These broad descriptions do not replace a check of the actual license and product endorsements. Form 25 and Form 25A Form 25 covers manufacture for sale or distribution of drugs outside Schedules C, C(1), and X. Form 25A is the related loan license, allowing use of another licensed manufacturer's facilities subject to applicable conditions. Form 25F Form 25F covers Schedule X drugs not specified in Schedules C and C(1). Its inclusion clarifies Rule 89 for this category. Form 28 and Form 28A Form 28 covers drugs in Schedules C and C(1), excluding Schedule X. Form 28A is the related loan license for eligible Schedule C and C(1) drugs. Form 28B Form 28B covers drugs specified in Schedules C, C(1), and X. Form 28D and Form 28DA Form 28D is used for manufacturing parenterals, sera, vaccines, and recombinant DNA drugs in large volumes for sale/distribution, excepting those products listed in Schedule X as per the form. Form 28DA is the loan-license version for these specialized products. Form 28E Form 28E is a license to manufacture and store blood products for sale or distribution. The final amendment includes this form. This gives blood-product manufacturers an express place in the revised Rule 89 list. The English notification does not repeat the word "Form" immediately before "28E." Its placement in the list makes the reference clear, but internal notes should quote the Gazette accurately. Form 28F Form 28F covers collection, processing, testing, storage, banking, and release of umbilical cord blood stem cells. Scope and Applicability Businesses Most Likely to Be Affected The amendment affects businesses making small quantities for examination, testing, or analysis, including: Pharmaceutical manufacturers, Loan-licensees, Schedule X drug manufacturers, Vaccine and sera manufacturers, Large volume parenteral manufacturers, Recombinant DNA product manufacturers, Blood-product manufacturers, Umbilical cord blood stem-cell establishments, Research and development units attached to licensed plants, and Regulatory, quality, production, and testing teams. The Product-Specific Test The key limit is "in respect of such drugs." Holding a listed form does not automatically remove Form 29 for every test product. The business must check the drug, site, category, dosage form, activity, and product permission. If coverage is missing, Form 29 may still be required before manufacture. No Express Blanket Exemption The amendment does not use the words "blanket exemption." It changes the license form list under the existing conditions. This is why a written review of applicability is safer than relying solely on the number printed on a license. Implementation Timeline and Norms Event Date Practical meaning Draft notification issued 21 April 2026 Proposed wording was published Draft made available to the public 22 April 2026 Thirty-day consultation period began Final notification dated 6 August 2026 The government signed the final rules Official Gazette publication 7 August 2026 Amendment came into force Separate transition period Not expressly specified Businesses should apply the revised wording from commencement The rule came into force on 7 August 2026. The notice does not provide any separate compliance period or phased implementation period. It does not clearly stipulate how the State Licensing Authority is to deal with a Form 29 application pending at the time of commencement. Pending cases require a different kind of attention, as the business should not assume the application is automatically over. Instead, they should send their license, products covered, and status of the application to the licensing authority. Why Was This Implemented? Official Position The final notice concerns the legal procedure but does not provide a lengthy statement of reasons. The notice shows that the draft was published, public opinions were sought, those opinions were considered, and the Central Government acted in consultation with the DTAB. Regulatory Analysis The purpose of the regulation could be seen from the language used. Rule 89 was earlier confined to Forms 25 and 28, while the Drugs Rules included other manufacturing license forms as well. The amendment makes the Rule 89 list similar to the format of the entire license. This could help reduce confusion among specialized manufacturers. This could also ensure consistency in decision-making between companies and authorities. But this is a practical evaluation, and not a direct commitment in the notification that each application will get easier or cheaper. Impact on Businesses Pharmaceutical and Loan-License Manufacturers The persons holding Forms 25A, 25F, 28A, 28B, or 28DA can now refer to a more clearly worded document. The forms were not explicitly mentioned in Rule 89 before 7 August 2026. The use of this new language may minimize reliance on similarity to Form 25 or 28. Loan licensees still need to verify the exact license arrangement and the facility where the activity will occur. A loan license does not erase the conditions attached to the approved manufacturing premises. Vaccine and Biological-Product Manufacturers Forms 28D and 28DA are now explicitly mentioned. This is important for companies that manufacture high-volume parenterals, sera, vaccines, and products made using recombinant DNA technology. Such companies perform development and validation activities and may require a Rule 89 evaluation, which will impact their projects. The amendment does not remove other approvals that may apply to a new drug, biological product, clinical program, or product change. Rule 89 should not be read in isolation. Blood Products and Cord Blood Stem Cells The inclusion of Forms 28E and 28F adds blood products and umbilical cord blood stem cell activity to the list. This area has its own technical and safety requirements. Companies need to ensure that any reliance on the revised rule is consistent with their license. Compliance and Quality Teams There is also a need for the regulatory, quality assurance, research, and manufacturing departments to update their internal decision trees. The current process, which relies on asking whether the firm has Form 25 or 28, is outdated. The revised procedure should record all ten forms and require a product-specific check. It should also separate the legal question under Rule 89 from other approval, labeling, testing, and record duties. How Businesses Will Achieve Compliance Step 1: Check the Purpose Confirm that the drug is made only for testing or analysis. Form 29 cannot be used for commercial sale. Step 2: Check the Existing License Check which manufacturing license the business holds. Confirm that it is one of the ten forms listed under Rule 89. Step 3: Check Drug Coverage Make sure the license covers the drug being tested. Check the product, strength, dosage form, and premises. Step 4: Check Other Approvals Check whether any product, new drug, clinical trial, or other approval is needed. The Rule 89 amendment does not remove these requirements. Step 5: Check Whether Form 29 Is Needed Form 29 will be used if the license does not include the drug. Submit an application using Form 30 when you need to use Form 29. Step 6: Follow Test-Manufacturing Rules Use the drug only for testing or analysis. Keep proper labels, records, and inspection documents. Do not sell the test batch. Step 7: Keep a Written Decision Record Record: Drug and activity License number Approved premises Other approvals checked Form 29 decision Reviewer’s name and date This note is not required in this exact format, but it can help during an inspection. Documents and Records to Review Document or record Status Purpose Existing manufacturing license Required for reliance on a listed form Confirms form, holder, and premises Product list and endorsements Required to establish drug coverage Supports the "in respect of such drugs" check Form 30 application Required where Form 29 is needed Application for the test license Form 29 license Required where Rule 89 applies Authorizes specified test manufacture Labels for test material Required under Part VIII Shows the limited purpose and identification details Quantity and recipient records Required for Form 29 licensees Tracks manufacture and supply Inspection Book Required for Form 29 licensees Allows inspectors to record observations Internal applicability note Recommended Explains why Form 29 was or was not considered necessary Businesses should not use this table as a universal checklist for applications. Exact filings may depend on the product, the State Licensing Authority, the premises, and other applicable laws. Compliance Risks and Issues to Avoid Treating the Amendment as the End of Form 29 Form 29 continues to exist. The amendment changes the circumstances in which an existing manufacturing license is considered under Rule 89. A business without suitable drug coverage may still need it. Checking Only the Form Number A listed form is only the first check. The license should relate to the drug concerned. Ignoring product endorsements, premises, or approved categories can lead to a weak compliance position. Starting Manufacture Too Early Where Form 29 is required, Rule 89 requires that it be obtained before manufacture begins. Production planning should therefore include a regulatory release point before any test batch is started. Selling Test-License Material Rule 92 restricts material prepared using Form 29 to be used only for examination, testing, or analysis. Companies need to ensure that the material does not become part of their commercial supply or sales. Ignoring Labels and Records Labelling and record-keeping responsibilities are set out in Rules 87, 88, and 92. Regardless of how small the batch may be, labelling and quantity records are important issues. Benefits for Businesses The clearest benefit is better recognition of the license system already used by the pharmaceutical sector. More manufacturing forms are expressly named in Rule 89. Loan licensees receive clearer treatment. Schedule X manufacturers are specifically addressed. Vaccine, sera, large volume parenteral, and recombinant DNA product units are included. Blood product and cord blood stem cell establishments are recognized. Internal compliance checks can use a clearer form-based starting point. Businesses may avoid unnecessary Form 29 filings where an existing listed license truly covers the drug. These are possible compliance and operational benefits. The notification does not guarantee lower costs, faster approval, or exemption in every case. Is This the Right Decision or an Additional Burden? Assessment area Why is it the right decision Possible burden or concern Broader recognition of license forms The old Rule 89 referred only to Form 25 and Form 28. The amendment recognizes additional manufacturing license forms used for loan licenses, Schedule X drugs, vaccines, biological products, blood products, and other specialized categories. Businesses must identify which license form applies to their product and activity. Alignment with the current licensing system Rule 89 now better reflects the wider structure of pharmaceutical manufacturing licenses under the Drugs Rules, 1945. Compliance teams must update old policies, checklists, and decision trees that mention only Form 25 and Form 28. Reduction in regulatory uncertainty Expressly naming more license forms can reduce doubt about whether manufacturers operating under those forms are recognized under Rule 89. The amendment does not answer every product-specific question. Different interpretations may still arise. Potential reduction in duplicate paperwork Where a business already holds an appropriate manufacturing license covering the drug, a separate test license could create repetitive paperwork without materially changing the approved premises or technical capability. This benefit applies only when the existing license is genuinely “in respect of” the drug concerned. Meaning of “in respect of such drugs” The phrase ensures that the existing license must have a real connection with the drug being manufactured for examination, testing, or analysis. This is the most important area of interpretation. A license form number alone may not prove product coverage. Product permissions and endorsements The amendment recognizes more license categories without removing existing product-level controls. This protects the regulatory system from overly broad exemptions. Companies may incorrectly confuse a manufacturing license with permission to manufacture every drug at the site. Site-specific approval Keeping the assessment tied to the licensed premises helps ensure that test manufacturing occurs at an approved facility. A business may have the correct license form but plan to conduct the activity at another unit, laboratory, or pilot facility. Dosage-form coverage Product-specific assessment helps ensure that the facility is suitable for the dosage form being manufactured. A site licensed for tablets may not necessarily be authorized to manufacture sterile injections, vaccines, or another specialized dosage form. Specialized pharmaceutical products Adding forms related to Schedule X drugs, vaccines, biological products, blood products, and cord blood stem cells makes Rule 89 more relevant to specialized manufacturers. These products are subject to greater safety, quality, storage, testing, and documentation controls. Loan-license manufacturers Express recognition of loan-license forms provides greater clarity to businesses using another licensed manufacturer’s facilities. Compliance may involve both the loan-licensee and the owner of the manufacturing facility. Responsibilities can be misunderstood. New drugs and additional approvals The amendment deals with the Rule 89 and Form 29 framework. It does not weaken separate approval requirements that may apply to new drugs. A company may wrongly treat the amended rule as permission to manufacture or test a new drug without other approvals. Commercial sale restrictions The regulatory distinction between test manufacturing and commercial manufacturing remains important. It protects patients and the market from unapproved products. Businesses must maintain strict controls to prevent test batches from entering commercial distribution. Internal compliance procedures The amendment allows businesses to create a clearer and more complete Form 29 decision process. Revising SOPs, forms, software, and training programs requires time and resources. Regulatory inspections Clearer documentation can help inspectors understand why a company relied on an existing manufacturing license instead of obtaining Form 29. A weak or undocumented interpretation may be challenged during an inspection. Impact on smaller businesses The amendment may help smaller companies holding one of the newly recognized licenses by reducing uncertainty and potentially avoiding unnecessary applications. Smaller businesses may lack an in-house legal or regulatory team to interpret the phrase “in respect of such drugs.” Different State-level practices A clearer central rule can support more consistent decisions across jurisdictions. State Licensing Authorities may initially interpret or implement the amendment differently. Implementation cost The amendment does not create a completely new license category or a broad new filing obligation. Businesses may still spend money on license reviews, SOP revisions, staff training, and professional advice. Long-term regulatory benefit Broader, clearer wording can improve consistency, reduce redundant applications, and support research, testing, and product development. Benefits may be delayed if authorities and businesses do not apply the new language consistently. Risk of treating the amendment as a blanket exemption The amendment can provide relief where an appropriate existing license already covers the drug. The greatest risk is assuming that every holder of a listed license is automatically exempt from Form 29 for every drug. The amendment should be considered more as an effective clarification rather than a new licensing requirement. This is because it enhances compliance with current licensing requirements rather than introducing a new approval process. Nevertheless, the amendment's effectiveness can only be achieved through prudent, case-by-case application. Business Opportunities Created These changes may require specialized compliance services. The probabilities exist because there is a need to review existing licenses and internal systems, and not due to any guarantees of a new market. Evaluation of license applicability for test batches Support with Form 29 and Form 30 filings where applicable Evaluation of product endorsements and authorized premises Liability/loan license compliance evaluations SOP updates for research and test manufacture Training for regulatory, quality, research, and production teams Recordkeeping and inspection-readiness support Specialized advice for vaccines, biological products, blood products, and cord blood stem cells Manufacturers may also gain from clearer planning. When the legal route is known early, research, validation, and testing work can be scheduled with fewer last-minute licensing questions. What Businesses Should Do Next Immediate Review Any internal checklist for Rule 89 that includes only Forms 25 and 28 must be updated to include all ten forms and a specific question about product coverage. Product and Site Mapping Regulatory teams need to map proposed test products against existing licenses, endorsements, approved sites, and related permissions. If anything is unclear, it needs to be resolved before scheduling the batch. Pending Applications If there was any pending Form 29 application on 7 August 2026, the applicant needs to see whether the amended rule has affected their position. The notification doesn't mention that pending applications are either automatically withdrawn or approved. Ongoing Control Businesses should make the Rule 89 review part of change control or R&D batch approval. This will help ensure that the question is checked each time a new product, site, process, or license arrangement is introduced. How Corpseed Can Help Corpseed supports pharmaceutical businesses with a clear, document-based assessment of the Drugs Rule 89 amendment 2026. The process begins with a review of the company’s actual license, products, premises, and proposed test-manufacturing activity. 1. Rule 89 Applicability Assessment Check whether amended Rule 89 applies to the proposed activity.  Determine whether the existing license covers the drug.  Identify whether Form 29 is still required.  2. Manufacturing License Review Review Forms 25, 25A, 25F, 28, 28A, 28B, 28D, 28DA, 28E, and 28F.  Examine license conditions, endorsements, and validity.  Explain how the license relates to the proposed activity.  3. Product and Premises Coverage Check Confirm whether the product or dosage form is approved.  Verify that the activity will take place at licensed premises.  Identify missing product, site, or manufacturing permissions.  4. Form 29 License Consultant Support Determine whether a Form 29 license is necessary.  Prepare the required document checklist.  Support the business throughout the licensing process.  5. Form 30 Application Assistance Help prepare the Form 30 application where required.  Review drug, premises, purpose, and applicant details.  Assist with supporting documents and authority queries.  6. Pharmaceutical Regulatory Gap Assessment Analyze deficiencies in licenses and permissions.  Review labelling and testing requirements.  Suggest effective solutions to the gaps.   7. SOP and Internal Checklist Updates Update procedures that mention only Form 25 and Form 28.  Add all license forms recognized under the amended Rule 89.  Create a product-specific Form 29 decision checklist.  8. Document Review and Inspection Readiness Review licenses, product permissions, batch records, and test documents.  Organize evidence supporting the company’s regulatory decision.  Prepare teams and records for possible inspections.  9. Ongoing CDSCO and State License Compliance Support continuing CDSCO and State Licensing Authority compliance.  Assist with license amendments, renewals, and product additions.  Monitor relevant changes and help update compliance processes. 

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Summary: The Directorate General of Foreign Trade ( DGFT ) has given businesses five more days to apply online for India-UK Comprehensive Economic and Trade Agreement (CETA) Tariff Rate Quotas (TRQs) for Calendar Year (CY) 2026. The application deadline, which was earlier set for 4 August 2026, has now been moved to 9 August 2026. The earlier closing date was 4 August 2026. The five-day extension applied only to the last date for filing online applications. It did not change the eligible vehicle categories, quota quantities, applicant eligibility, allocation method or import conditions set by Public Notice Nos. 19/2026-27 and 22/2026-27. Notification at a Glance Particular Verified details Issuing authority Directorate General of Foreign Trade, Department of Commerce, Ministry of Commerce and Industry Document type Public Notice - deadline extension Public notice number 26/2026-27 File number 01/89/180/110/AM-25/PC-2(A)/E-45719 Date of issue 5 August 2026 Gazette publication date 6 August 2026 Gazette identification CG-DL-E-06082026-275248, Gazette of India, Extraordinary, Part I, Section 1, No. 222 Effective date Not separately or expressly specified Governing framework Paragraphs 1.03 and 2.04 of the Foreign Trade Policy 2023, Public Notice Nos. 19/2026-27 and 22/2026-27 Sector and activity covered Online TRQ applications for specified new CBU motor vehicles originating in the United Kingdom Main stakeholders Eligible OEMs and OEM-authorised dealers or channel partners seeking CY 2026 TRQ allocation Earlier deadline 4 August 2026 Revised deadline 9 August 2026 Core development Extension of the online application closing date by five calendar days Nature of requirement Time-bound application opportunity, no new eligibility or import condition was created by this notice This public notice is narrow in scope. It changes one procedural date and expressly preserves all other terms and conditions in the two earlier public notices. What Changed in the India-UK CETA TRQ Deadline? DGFT moved the closing date for online CY 2026 TRQ applications from 4 August to 9 August 2026. The authority stated that it granted the extension after considering representations received from trade and industry. Compliance area Earlier position Revised position Business meaning Application opening date 21 July 2026 Unchanged The original application window continued to apply Application closing date 4 August 2026 9 August 2026 Eligible applicants received five additional calendar days Eligible goods Specified new CBU passenger and goods vehicles Unchanged No additional vehicle category entered the CY 2026 window TRQ quantities Quantities notified by Public Notice No. 22/2026-27 Unchanged The extension did not increase quota availability Eligibility and allocation rules Conditions under Public Notice No. 19/2026-27 Unchanged The same applicant, evidence and allocation requirements continued Public Notice No. 26/2026-27 did not reopen or redesign the TRQ scheme. Its legal effect was limited to extending the last date for submitting an online application. Application Coverage and CY 2026 TRQ Quantities Public Notice No. 22/2026-27 invited applications for four categories of motor vehicles. The goods had to be imported as Completely Built Units (CBUs). The covered passenger vehicles also had to be new, meaning they had not been registered anywhere before importation. Covered vehicle category CY 2026 TRQ quantity Main tariff-item group New CBU passenger vehicles with engine capacity not exceeding 1,500 cc 2,329 Specified tariff items under HS 8703 New CBU passenger vehicles exceeding 1,500 cc but not exceeding 3,000 cc for petrol vehicles, or exceeding 1,500 cc but not exceeding 2,500 cc for diesel vehicles 2,329 Specified tariff items under HS 8703 New CBU passenger vehicles above 3,000 cc for petrol vehicles, or above 2,500 cc for diesel vehicles 4,658 Specified tariff items under HS 8703 CBU goods transport vehicles, other than electric or hydrogen-fuel vehicles 1,164 87041010, 87042100, 87042200, 87042300, 87043100 and 87043200 The overall amount for CY 2026 notification was 10,480 vehicles. The overall amount does not imply that all applicants were eligible for an allocation. Eligibility review, the quantity requested and the applicable allocation method remained pertinent. Electric, hybrid and hydrogen passenger-car TRQs appear in the broader annual framework notified through Public Notice No. 19/2026-27, but Public Notice No. 22/2026-27 did not invite CY 2026 applications for those passenger-vehicle categories. They should therefore not be added to the scope of this deadline extension. The Regulatory Framework and Unchanged Conditions The Foreign Trade Policy 2023 authorises DGFT to notify and amend the Handbook of Procedures, its appendices and application forms through public notices. Acting under that framework, Public Notice No. 19/2026-27 amended paragraph 2.92 and Appendix 2A of the Handbook of Procedures 2023 to incorporate India-UK CETA vehicle TRQs and their administration procedure. Notice No. 22/2026-27 subsequently made available the CY 2026 application period together with the list of covered products and their quantities. Public Notice No. 26/2026-27 altered only the deadline. Since the extension notice kept everything else intact, the applicants were bound by the original framework, which included the following terms: Eligible applicants: Only Original Equipment Manufacturers (OEMs), or dealers and channel partners duly authorised by OEMs of vehicles originating in the United Kingdom, were eligible to apply. Pre-purchase agreement: Each applicant had to submit an agreement issued by the UK vehicle OEM stating the quantity agreed to be supplied during the relevant TRQ year under each TRQ. Online filing: Applications had to be submitted on the DGFT website through the Import Management System's TRQ service. Allocation when demand was within quota: An eligible applicant could receive the quantity requested. Any remaining quantity could be made available through a further filing opportunity. Allocation when demand exceeded quota: Available quantities were to be distributed among eligible applicants in proportion to the quantity each requested on the basis of its pre-purchase agreement. Certificate of Origin: At customs clearance, the importer had to produce a Certificate of Origin issued by the competent UK authority. Electronic authorisation and debit: DGFT was to issue the TRQ electronically and transmit it to the Indian Customs EDI System. Imports were allowed only against electronic debit in that system. Validity: A TRQ certificate could remain valid for a maximum of 12 months or until the end of the calendar year, whichever occurred first. Customs clearance had to take place within the stated validity. Under-utilisation: Significant failure to use an allocation could be considered by the authority when determining the importer's allocation for the next TRQ year. Quota control: DGFT was to monitor cumulative certificates and stop issuing them once the applicable quantity limit was reached. These are continuing conditions from the underlying procedure, not new duties created by the deadline-extension notice. Annexure Reference Requires Official Clarification The linked public notices contain a material cross-reference inconsistency. Public Notice No. 19/2026-27 says that the India-UK CETA TRQ application procedure will be inserted as Annexure VI of Appendix 2A of the Handbook of Procedures 2023. Public Notice No. 22/2026-27, however, refers applicants to Annexure VII of Appendix 2A of the FTP 2023 while citing Public Notice No. 19/2026-27. The notice does not clarify the difference between the two references. Applicants should not assume which one is correct. It is better to check the latest consolidated Handbook of Procedures or confirm the position with DGFT before using the reference in an application, legal document, or customs record. Impact on Eligible Vehicle Importers The extension offered a short opportunity to complete an otherwise eligible filing. It did not relax the evidence standard or guarantee an allocation. OEMs and OEM-authorised applicants Eligible applicants had five additional calendar days to finalise the online form and supporting pre-purchase agreement. Businesses still had to establish their status as an OEM or a duly authorised dealer or channel partner. Requested quantities continued to affect allocation if valid demand exceeded the available TRQ. Import, customs and compliance teams Teams needed to align the requested tariff item, vehicle type, engine capacity and quantity with the precise categories in Public Notice No. 22/2026-27. Getting a quota does not finish the import process. The Certificate of Origin, TRQ validity and electronic customs debit still need to be in place when the vehicle is cleared. Applicants should keep copies of the application, acknowledgement, OEM authorisation, pre-purchase agreement and any later communication from DGFT. These records may be needed to support the transaction or deal with questions later. Commercial planning The extension did not increase the quota or alter the tariff treatment. Businesses should not interpret extra filing time as additional vehicle availability. Supply, shipment, and customs planning would still need to fit within the authorisation's stated validity period and end by the end of CY 2026. Any commercial benefit depends on receiving an allocation, satisfying origin and import conditions, and completing clearance within the valid period. What Businesses Should Do After the Deadline Because the 9 August 2026 deadline has passed, the appropriate next step depends on whether an application was submitted in time. Priority Action Responsible team Expected outcome Immediate Confirm that the portal submission was completed on or before 9 August 2026 and retain the acknowledgement Import compliance / DGFT team Evidence of timely filing Immediate Reconcile the vehicle category, tariff item, quantity and pre-purchase agreement with the filed application Legal, customs and procurement teams Early identification of inconsistencies High Monitor the DGFT account and official communications for allocation, queries or further filing rounds Authorised signatory/compliance team Timely response to the authority High Prepare Certificate of Origin and customs-clearance controls for any allocation received Authorised signatory/compliance team Readiness for compliant clearance Ongoing Track authorisation validity and actual utilisation against the allocated quantity Supply-chain and compliance teams Reduced risk of expiry or under-utilisation If no timely application was filed Monitor the official DGFT public-notice page for a further window or reallocation, do not assume late filing is permitted Management and regulatory team Action based only on an official opportunity A business that missed the deadline should not backdate, misstate or treat a draft application as a completed filing. The source notice does not provide a late-application route, a condonation mechanism, or an individual relaxation procedure. How Corpseed Can Help Corpseed can provide DGFT TRQ application support and related import-compliance assistance for businesses handling vehicle imports under the India-UK CETA. Support can be tailored to the applicant's role, vehicle category and stage of the DGFT process. Review applicant eligibility as an OEM or OEM-authorised dealer or channel partner. Map vehicle descriptions and tariff items to the notified CY 2026 TRQ categories. Review OEM authorisation and pre-purchase agreements for consistency with the filing. Check submitted applications and acknowledgements for internal record completeness. Support responses to DGFT queries or requests for clarification. Coordinate authorisation, Certificate of Origin and customs-document readiness. Track allocation validity, quantities and utilisation controls. Monitor official notices for any reallocation or fresh application opportunity. Professional support cannot guarantee allocation, preferential duty treatment or customs clearance. It can help applicants organise evidence, identify inconsistencies and coordinate the DGFT and import-compliance work streams. Eligible businesses seeking a review of a filed application or post-allocation compliance may contact Corpseed for document-specific DGFT and India-UK CETA advisory support. Key Takeaways The India-UK CETA TRQ deadline extension moved the CY 2026 online application closing date from 04, August to 09 August, 2026. It did not change the covered CBU vehicle categories, the 10,480-unit aggregate quota, applicant eligibility, allocation method, or import conditions. DGFT issued the extension through Public Notice No. 26/2026-27 dated 5 August 2026. The extension followed representations from trade and industry. Only the application deadline changed, all terms in Public Notice Nos. 19/2026-27 and 22/2026-27 remained in force. The extended deadline ended on 09 August 2026. Businesses that filed their applications should keep the acknowledgement and other filing records ready in case DGFT or customs asks for them. Those who missed the deadline should not assume that late applications are still open. They should wait for any further update or reallocation announced by DGFT. The difference between Annexure VI and Annexure VII in the earlier notices also needs to be checked against the latest official procedure.