Market Medley

  The Chairman of the Securities and Exchange Board of India (SEBI) – Mr. Tuhin Kanta Pandey, at the IVCA Conclave 2026 held last week, outlined SEBI’s evolving agenda for India’s Alternative Investment Fund (AIF) ecosystem. The address highlighted both the rapid growth of the AIF industry and SEBI’s approach to strengthening governance while facilitating ease of doing business.

  The Hon’ble Supreme Court in its ruling held that a long-standing tenant who enters into an agreement to sell with his landlord to purchase the very property he has been occupying cannot be made to pay stamp duty on that agreement as though it were a conveyance deed. The Court set aside the orders of both the Trial Court and the Hon’ble HC of AP, which had directed the tenant-buyer to pay stamp duty and penalty before the agreement could be admitted in evidence in a specific performance suit.

  The Union Cabinet chaired by Hon’ble PM Shri Narendra Modi has approved amendments to India’s Foreign Direct Investment (FDI) policy governing investments from countries sharing land borders with India (‘LBCs’). The changes modify the framework introduced through Press Note 3 (2020)*, which required government approval for foreign investments in India from LBCs.

  As you are aware, on 20 February 2026 the reciprocal tariffs announced by the US government on 02 April 2025, was struck down by the US Supreme Court, ruling that the IEEPA does not confer any authority to the Executive to impose tariffs.

  The recently announced trade understanding between India and the United States marks a significant macro-positive development for India, resolving a prolonged period of uncertainty that had clouded the investment landscape. While not a formal, comprehensive Free Trade Agreement (FTA), this arrangement addresses immediate tariff barriers and signals a recalibration of a critical economic relationship. Its implications span foreign investment, currency stability, corporate margins, and market sentiment, though it comes with inherent caveats characteristic of U.S. trade diplomacy.

  In a decision that underscores the Federal Reserve’s delicate balancing act, the Federal Open Market Committee (FOMC) voted yesterday to maintain the target range for the federal funds rate at   3.50%-3.75% . This pause follows an aggressive easing cycle that saw rates cut by 100 basis points in 2024 and a further 75 basis points in 2025. While the majority of the committee favored standing pat, the policy statement revealed a notable dissent, with   two members advocating for an immediate 25 basis point cut , highlighting the ongoing debate within the central bank.