Decoding India’s Regulatory Landscape

Explore the latest regulatory developments impacting ECB, Foreign Exchange Management, OECD guidelines, External Commercial Borrowing, and Artificial Intelligence. Learn about RBI's amendments to ECB reporting, UTI requirements for OTC derivatives, and OECD's AI due diligence framework shaping India's regulatory landscape.

Show Notes

This episode covers regulatory updates in ECB, Foreign Exchange Management, OECD, External Commercial Borrowing, Artificial Intelligence.

We begin with the Reserve Bank of India's recent amendments to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2026, focusing on enhanced reporting frameworks for External Commercial Borrowings to improve transparency and compliance.

Next, learn about the RBI's mandate for Unique Transaction Identifiers (UTIs) in over-the-counter derivative transactions, strengthening market surveillance and regulatory oversight starting January 2027.

Finally, hear about the OECD's contributions at the India AI Impact Summit, including their Due Diligence Guidance on Responsible Artificial Intelligence and updates on the Hiroshima AI Process Code of Conduct reporting framework.

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Articles mentioned:
  1. Reporting under Foreign Exchange Management Act, 1999 – Returns pertaining to External Commercial Borrowing (ECB)
  2. Unique Transaction Identifier for OTC Derivative Transactions
  3. Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026
  4. The OECD at the India AI Impact Summit

What is Decoding India’s Regulatory Landscape?

Regulatory news, updates, and insights for India presented by the Carver Agents team

Welcome to Carver's India Regulatory Updates for February 23, 2026.

We begin today with key developments in foreign exchange regulations and derivative transaction reporting that will impact market participants across India.

On February 18th, the Reserve Bank of India issued amendments to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2026. These amendments revise the framework governing External Commercial Borrowings, or ECBs. Specifically, the Master Direction reporting forms, including Part V - Annex I, have been updated to reflect these changes. The amendments aim to streamline reporting requirements and enhance compliance clarity for borrowers and lenders engaged in cross-border financing. Additionally, certain paragraphs related to ECBs have been deleted from the Master Directions to align with the new regulatory approach. These changes are intended to improve transparency and ease of doing business in the external commercial borrowing space.

In related news, the Reserve Bank has mandated the use of Unique Transaction Identifiers, or UTIs, for over-the-counter derivative transactions. Starting January 1, 2027, all eligible market participants must generate and report UTIs for specified categories of OTC derivatives. This requirement is designed to strengthen transaction-level data reporting, improve market surveillance, and support regulatory oversight of derivative markets. Market participants are advised to prepare their systems and processes to comply with this new mandate ahead of the effective date.

Turning to international cooperation on emerging technologies, the Organisation for Economic Co-operation and Development, or OECD, participated in the recent India AI Impact Summit. The OECD released its Due Diligence Guidance on Responsible Artificial Intelligence, providing a framework for ethical AI development and deployment. Updates were also shared on the reporting framework for the Hiroshima AI Process Code of Conduct, which promotes transparency and accountability in AI applications. Several OECD papers on AI governance and policy were published and made available for public consultation. These initiatives underscore the growing importance of responsible AI practices in India’s regulatory landscape and the global commitment to ethical technology use.

Now, shifting focus to personnel updates in the regulatory sector. The Securities and Exchange Board of India, spelled S-E-B-I, announced the appointment of Kevin A Vander Grift as a new member of its advisory committee. Mr. Vander Grift brings extensive experience in financial markets and regulatory compliance, which is expected to support S-E-B-I’s ongoing efforts to enhance market integrity and investor protection.

That concludes today’s regulatory updates from India. We will continue to monitor these developments and provide timely information to keep you informed.

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