SEBI Grade A Current Affairs — 29 July 2026

The Central Board of Direct Taxes (CBDT), under India's Ministry of Finance, released a revised Guidance Note on FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) to strengthen Automatic Exchange of Information (AEOI) frameworks. This updated note clarifies due diligence obligations, reporting requirements, and entity classification for Financial Institutions. India participates in AEOI under the OECD-led CRS framework and the bilateral India-US FATCA Intergovernmental Agreement (IGA), both aimed at curbing cross-border tax evasion.

FATCA and CRS are two parallel but distinct frameworks designed to combat offshore tax evasion through automatic information sharing between tax authorities globally. FATCA is a US law requiring foreign financial institutions to report US account holders' data to the IRS, typically via an Intergovernmental Agreement (IGA). India signed a Model 1 IGA with the US in 2015, making CBDT the competent authority for compliance. CRS is the OECD's multilateral standard adopted by over 100 jurisdictions, including India, enabling tax authorities to automatically receive information on residents' foreign financial accounts annually. India exchanges CRS data through the Multilateral Competent Authority Agreement (MCAA). The CBDT guidance note matters because it operationalises these frameworks domestically — telling banks, mutual funds, insurance companies, and depositories exactly how to classify accounts, perform due diligence, and file reports. The revised note is significant for RBI Grade B and SEBI Grade A aspirants because it sits at the intersection of international tax law, financial regulation, and AML/CFT compliance. For SEBI, regulated entities like brokers and depository participants are Reporting Financial Institutions under CRS. For RBI, commercial banks must identify Reportable Accounts and submit returns. Non-compliance attracts penalties, making the guidance note operationally critical for India's financial sector.

The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, released a comprehensive Guidance Note on Crypto-Asset Reporting under the Income-tax Act, 2025. The note clarifies reporting obligations for Virtual Digital Assets (VDAs), including cryptocurrencies and NFTs, covering taxation under Section 115BBH at 30%, the 1% TDS under Section 194S, and disclosure requirements for domestic and foreign crypto holdings under the new framework.

India's crypto taxation framework, introduced via the Finance Act 2022, created a distinct regime for Virtual Digital Assets (VDAs). Section 115BBH imposed a flat 30% tax on VDA transfer gains with no deduction for losses or carry-forward. Section 194S mandated 1% TDS on VDA transfers above specified thresholds. However, operational ambiguities persisted around reporting — particularly for decentralised exchanges, peer-to-peer transactions, and foreign-held crypto assets. The CBDT Guidance Note 2025 addresses these gaps comprehensively. It aligns India's domestic framework with the OECD's Crypto-Asset Reporting Framework (CARF), which India is committed to implementing under G20 obligations. CARF requires Reporting Crypto-Asset Service Providers (RCASPs) to collect and exchange user data with tax authorities. The Guidance Note specifies which entities qualify as RCASPs, which asset classes fall under VDA definitions, and how foreign crypto holdings must be disclosed in Schedule FA of ITR. For SEBI, the note has capital-market implications as crypto derivatives and tokenised securities blur boundaries between regulated and unregulated instruments. For RBI, it intersects with CBDC policy and shadow banking concerns about stablecoin adoption. UPSC examinees must understand this as India's move toward formalising the digital asset economy within a statutory tax architecture.

SEBI issued a Release Order for Recovery Certificate No. 6420 of 2026 against Deepali Dwivedi (PAN: CTGPS9075L) in the matter of D.S. Capital Ventures Private Limited, published in July 2026 under SEBI's enforcement and recovery proceedings. The release order indicates compliance with an earlier SEBI direction, triggering discharge of the recovery certificate. SEBI issues such orders under its recovery mechanism to enforce monetary penalties and disgorgement orders against securities law violators.

SEBI's recovery proceedings are a critical enforcement arm that converts unexecuted penalty orders into enforceable recovery certificates, similar to arrears of land revenue under the Revenue Recovery Act. When an entity or individual fails to pay a penalty, disgorgement amount, or settlement dues, SEBI issues a Recovery Certificate — essentially a legally executable instrument — against the defaulter. Recovery officers then have powers to attach bank accounts, properties, and seize assets.

In the D.S. Capital Ventures matter, a Recovery Certificate (No. 6420 of 2026) was issued against Deepali Dwivedi. The subsequent Release Order signals that she complied — meaning the dues were paid or the order was otherwise satisfied — prompting SEBI to formally release the certificate and the attachments or proceedings initiated under it.

For SEBI Grade A aspirants, this illustrates the full enforcement lifecycle: adjudication order → penalty imposition → failure to pay → Recovery Certificate → attachment/recovery action → compliance → Release Order. This is governed under Section 28A of the SEBI Act, 1992, which empowers SEBI to recover amounts as if they were arrears of land revenue. The two-stage process — certificate issuance and release — demonstrates that SEBI's enforcement is not merely punitive but outcome-focused, rewarding compliance with formal discharge. Understanding this mechanism is essential for questions on SEBI's quasi-judicial and enforcement powers.