Version 23 - June 2026 (CUD release)

The

CUD Release

focuses on the legislative content changes for the upcoming

Period Ending March 2027

.

The NFRA has issued a new series on captioned topic under its Auditor–Audit Committee Interactions series, focusing on provisions, contingent liabilities, and contingent assets, pursuant to its initiative to enhance audit quality, governance oversight, and transparency in financial reporting. The guidance highlights key expectations under Ind AS 37 (Provisions, Contingent Liabilities and Contingent Assets) and relevant Standards on Auditing, including SA 540, SA 501, and SA 505, which outline auditors' responsibilities related to accounting estimates, along with requirements under the Companies Act, 2013 and SEBI LODR. It outlines critical areas of judgment, estimation, disclosures, and audit procedures, including litigation, onerous contracts, restructuring, and environmental obligations.

SEBI has issued the SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2026. The amendments have made various changes in the requirements for the abridged prospectus and for the lock-in of shares at the time of an Initial Public Offer (IPO).

The Finance Bill 2026 received the assent of the President on 30 March 2026 and may be called the Finance Act, 2026. Save as otherwise provided in this Act, sections 2 to 129, clause (b) of section 152 and section 156 shall come into force on 1 April 2026 and sections 153 to 155 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. For more details refer Gazette id no CG-DL-E-31032026-271439.

The CBDT has notified the Income Tax Rules, 2026, which will come into effect from 1 April 2026.

MCA has notified the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026, inter alia, permitting companies to undertake CSR activities through subscription to zero coupon zero principal (ZCZP) instruments, subject to an overall cap of 10% of the total CSR expenditure in a financial year. The amendments also introduce definitions of 'Not for Profit Organization' and 'zero coupon zero principal instrument'. In addition, through a separate notification, Schedule VII to the Companies Act, 2013 has been amended to include subscription to ZCZP instruments on the Social Stock Exchange as a permissible CSR activity. These amendments, among others, came into effect on 27 May 2026.

Various Expert Advisory Committee (EAC) opinions has been published by ICAI providing clarifications on accounting done by companies.

SEBI has issued a circular granting a one-time relaxation from the applicability of penal provisions under the Master Circular for listed entities whose due date for compliance with the MPS requirements falls during the period from 1 April 2026 to 30 September 2026. The circular came into force on 7 April 2026.

The Ministry of Labour and Employment has notified the following rules relating to the Labour Codes. These came into force on the date of their publication in the Official Gazette, i.e., 8 May 2026.

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