This week in Indian law: SEBI extended trading window closure restrictions to relatives of insiders, the NCLAT reaffirmed homebuyer financial creditor status under IBC, and the Supreme Court clarified the limits on post-judgment modifications. Three-category coverage with compliance-impactful developments. 5 significant legal developments this week across securities regulation, insolvency, and criminal law.
Top story
SEBI Extends Trading Window Closure to Relatives of Designated Persons
Category: securities-market | Date: 21 April 2025 | Source: SEBI
SEBI issued a circular amending the Prohibition of Insider Trading (PIT) Regulations to extend trading window closure restrictions to relatives of designated persons. Previously, only the designated persons themselves were subject to trading window closures. The amendment brings immediate family members — including spouses, parents, siblings, and children — within the restriction framework. Implementation is phased, beginning July 2025 for large-cap companies.
Why it matters: Listed companies must update their insider trading codes and compliance frameworks to include relatives of designated persons. Compliance officers face the challenge of monitoring and enforcing restrictions on a significantly larger group of individuals. The phased implementation provides some preparation time, but system changes must begin immediately.
Read more: Veritect analysis
Court judgments
NCLAT: Homebuyers Remain Financial Creditors Until Possession
Court: NCLAT | Date: 22 April 2025
The NCLAT reaffirmed that homebuyers retain their status as financial creditors under Section 5(8)(f) of the IBC until actual physical possession of the flat or unit is delivered. The ruling reinforces the "continuing default" doctrine — the default persists as long as the builder has not delivered possession, regardless of when the original booking or agreement was executed.
Key point: Real estate developers cannot argue that homebuyer claims are time-barred or that financial creditor status lapses — the default is continuing until possession is delivered.
SC: Altering Reasoning in Judgment Is Not Clerical Correction
Court: Supreme Court of India | Date: 25 April 2025
The Supreme Court ruled that changes to the substantive reasoning in a criminal judgment cannot be effected under the guise of "clerical corrections" under Section 362 of the Code of Criminal Procedure. The Court distinguished between genuine clerical or arithmetical errors and substantive modifications to legal reasoning, holding that the latter is impermissible once judgment is delivered.
Key point: Courts cannot use Section 362 CrPC (now Section 473 BNSS) to alter their reasoning after delivering judgment — the provision is limited to correcting genuine clerical or arithmetical errors.
Supreme Court · Veritect analysis
Also this week
- Constitution Bench listing — The five-judge Constitution Bench reference on whether courts can modify arbitral awards was listed for hearing later in the month.
- NCLAT activity — The Appellate Tribunal continued active hearing of personal guarantor insolvency matters following the Section 61 appeal ruling from Week 14.
By the numbers
- July 2025 — SEBI PIT trading window restriction implementation begins for large-cap companies
- 5(8)(f) — IBC section defining financial creditor status for homebuyers, reaffirmed by NCLAT
- 362 — CrPC section (now 473 BNSS) whose scope the SC restricted to genuine clerical errors
Looking ahead
- 28-30 April: Constitution Bench expected to hear Gayatri Balasamy arbitration matter
- Late April: SC summer vacation schedule to be announced
- May: Regulatory focus as SC approaches summer recess
This is the Veritect Weekly Legal Roundup for Week 17 of 2025. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.