The regulatory landscape in India has tightened in 2025, with SEBI, RBI, and MCA issuing multiple circulars targeting shell structures, fund diversion, and promoter-linked opacity. SEBI’s new AIF transparency norms mandate quarterly disclosures of portfolio-level risk, valuation methodology, and investor concentration.
RBI’s crackdown on NBFCs engaging in backdoor promoter financing has led to a wave of compliance advisories. Entrepreneurs are being urged to avoid circular lending, unsecured bridge loans, and non-arm’s length transactions. Family offices and private credit investors are recalibrating their due diligence frameworks accordingly.
Festive seasons and year-end liquidity cycles often see a spike in questionable practices. In response, advisory firms are issuing market alerts warning clients against “invoice-based” funding, “vendor layering,” and “GST arbitrage” schemes. These alerts are crucial for protecting MSMEs from reputational and financial risk.
