Financial regulatory changes in India and globally are being driven by technological disruption, shifting economic conditions, and a strong push for greater oversight. Key trends include the use of technology for proactive compliance, a focus on consumer protection, and increased scrutiny of areas like cybersecurity and ESG (environmental, social, and governance) reporting. 

Regulatory changes and compliance in India

Reserve Bank of India (RBI)

• Regulatory consolidation: The RBI is working to simplify its regulatory framework by consolidating about 9,000 circulars into 238 Master Directions. This initiative reduces the compliance burden on regulated entities like banks and non-banking financial companies (NBFCs).
• Automated compliance monitoring: Starting in early 2025, the RBI has mandated that regulated entities automate their compliance functions. This is intended to standardize monitoring, reduce human error, and strengthen internal governance.
• Consumer protection: The central bank has issued draft directions in October 2025 to overhaul the Integrated Ombudsman Scheme, including raising compensation ceilings and expanding the scope of its services to a wider range of financial products.
• Prudential norms: In October 2025, Fitch Ratings noted that Indian banks are poised to strengthen their resilience under proposed RBI reforms, which include a new Expected Credit Loss (ECL) framework.

Securities and Exchange Board of India (SEBI)

• IPO reforms: SEBI introduced changes to the initial public offering (IPO) rules in October 2025. These reforms provide more flexibility to companies with a higher post-listing market capitalization by easing the minimum public shareholding obligations.
• Investor tracing tool: SEBI has introduced "MITRA," an online platform for investors to trace inactive and unclaimed Mutual Fund folios.
• Regulation of angel funds: New regulations were issued in September 2025 to substantially revamp the framework for angel funds. This includes new eligibility criteria for investors and changes to investment limits.
• Compliance and transparency: An updated Investor Charter for stockbrokers requires them to clearly inform clients of their rights. Brokers must also continue to publicly disclose data on investor complaints to ensure transparency. 

Key compliance challenges in India

• Constant change: The regulatory landscape is continuously evolving, requiring businesses to be agile and adapt their operations to frequent updates.
• Managing complex regulations: Financial institutions must stay on top of sector-specific and broad regulations, which are becoming more complex due to technological advances and globalization.
• Technology integration: The shift towards tech-driven compliance requires significant investment in new systems and training to effectively implement automated monitoring and reporting.
• Data protection: With the introduction of the Digital Personal Data Protection (DPDP) Act, 2023, companies must handle and protect customer data with greater care to avoid hefty fines.