The Kerala Gold and Silver Merchants Association has urged the State government to settle all tax-related cases pending from the pre-Goods and Services Tax (GST) era in the first Budget of the new government. It has also called for a package under which penalties are imposed only for actual violations detected during inspections.

At its State Council meeting, the association pointed out that several cases challenging tax notices are pending before courts. According to the association, traders are being asked to pay tax, penalties and interest amounting to as much as ₹1 crore for errors involving only ₹10,000.

The council also demanded stronger action against parallel gold trade and smuggling operations functioning without GST registration. It claimed that the annual turnover of the unregistered parallel sector exceeds that of the State’s 12,000 GST-registered gold traders, resulting in substantial tax leakage. Bringing such operators under the tax net would help increase government revenue, the association said.

The association further requested the Chief Minister to constitute a commission to study the challenges facing the gold trade sector and formulate policies that support the industry’s growth.

The council also decided to organise the Kerala Jewellery International Fair at Angamaly from July 3 to 5. A State convention, expected to attract more than 5,000 gold traders, will be held alongside the event.

Published on June 15, 2026

Reserve Bank of India (RBI) logo
| Photo Credit:
SHASHANK PARADE

The slump in oil prices triggered by the announcement of a ​U.S.-Iran peace deal is
poised to complement the Indian central bank’s recent ⁠efforts to
support the rupee, brightening the currency’s near-term
trajectory.

The rupee strengthened about 0.7% to 94.4625 per dollar on
Monday, its highest level in seven weeks. It was buoyed by a
plunge in ‌crude oil prices after Washington and Tehran indicated
they had reached an initial deal to halt their war and reopen
the Strait of Hormuz.

The currency ‌may be entering a more supportive near-term
phase with lower oil prices reducing ‌pressure ⁠on India’s import
bill and current account, while the Reserve Bank ⁠of India’s
measures to attract billion of dollars begin to attract inflows,
analysts said.

The rupee was the second-best performing Asian currency on
the day, trailing only the Indonesian rupiah. Its year-to-date
losses have narrowed to 5.6%, with ​the currency now about 2.5%
above ‌the all-time low of near 97 per dollar hit about a month
back.

RBI’s recent measures have helped address pressures on
India’s balance of payments, with the drop in oil prices further
reinforcing these efforts, said Gaura Sen Gupta, economist at
IDFC First ‌Bank.

Sen Gupta expects the rupee to appreciate to around the
93-94 level ​by September, aided by a meaningful revival in
inflows related to the central bank’s scheme to draw foreign
currency deposits from non-resident Indians.

Economists have ⁠upgraded their outlook for India’s balance
of payments following the RBI’s measures, with most now
expecting a marginal surplus this fiscal year, versus prior
projections of an up to $70 billion ‌deficit.

Until recently, the rupee was widely seen among the most
vulnerable currencies in Asian FX, hit by higher oil prices and
expectations skewed towards more losses.

A handful of market participants believed the RBI might be
forced to hike its policy rate to support the currency, in line
with moves by the Indonesian and Philippine central banks.

WAR CLOUDS FADE
If the Iran peace deal holds and oil prices remain lower, the
rupee ‌is poised to appreciate, said Hemant Mishr, founder and
CIO of Singapore-based S Cube Capital. He expects ​the currency
to strengthen toward the 92 per dollar level by September,
adding that it remains undervalued.
Since the start of the U.S.-Israeli war with ⁠Iran, foreign
investors have withdrawn roughly $30 billion from Indian
equities.
Those portfolio outflows should start to reverse, ⁠with
investors growing more confident that the worst of India’s
balance-of-payments and currency pressures have passed, Mishr
said.

The extent of any rupee rally will depend on ‌how far the
central bank allows it to run, economists said, noting that the
RBI may not be keen on excessive appreciation, potentiallyusing
any strength in the currency ​to pare its sizeable FX forward
book.

Published on June 15, 2026

The Central Government has notified amendments to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, broadening access for overseas individual investors to invest in listed Indian companies through stock exchanges and raising investment limits under the portfolio investment route.

According to the notification issued by the Department of Economic Affairs on June 12, the existing provisions applicable to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) have been expanded to cover “an individual person resident outside India”. The notification states that “An individual person resident outside India may, on repatriation basis, purchase or sell equity instruments of a listed Indian company and other securities” subject to specified conditions.

Further, the amended Schedule III provides that “The total holding by any individual person resident outside India shall be less than ten per cent of the total paid-up equity capital” of a listed Indian company. The rules also specify that “the total holdings of all individual person resident outside India put together in the Indian company under this schedule shall not exceed twenty four per cent of the total paid-up equity capital”. The amendments effectively widen the investor base beyond NRIs and OCIs and raise the ceiling for overseas individual portfolio investments in listed Indian companies.

The move is expected to make Indian equities more accessible to global retail and individual investors, potentially supporting foreign portfolio inflows and improving market liquidity. Higher permissible ownership limits could particularly benefit large-cap stocks, banks and companies with relatively low foreign shareholding, as they may attract a broader pool of overseas investors.

The notification, however, retains safeguards related to investments that could result in the transfer of ownership or control to entities or citizens of countries sharing a land border with India, requiring prior government approval in such cases. The amended rules came into force from the date of their publication in the Official Gazette on June 12, 2026.

Published on June 15, 2026