This article argues that the conduct-based review under the Act may not be able to reach a significant share of the market because the power is substantially structural as it is sustained by the continued exclusion of ATF from the goods and services tax.

While the amended regulations fill in the gaps of digital governance, eligibility criteria for startups, inadequate disclosures, and angel investing reform in a comprehensive way, these amendments' success will depend on reconciling 3 conflicts: the mandatory dematerialisation of the foreign entities, moral hazard created by increased eligibility criteria, and concentration of the capital pool within a thin accreditation base.

This piece explores the dichotomy between the continued strength of India’s primary market and the bearish nature of its secondary market. It briefly examines the possible reasons behind this divergence, including foreign outflow of capital, domestic liquidity, regulatory timing, and considers what this may say about the broader state of the Indian markets in 2026.