Sitharaman to Table Finance Bill 2026, Corporate Law Reform in Parliament

The Finance Bill, 2026 aims to give effect to the financial proposals of the Central Government for the 2026-2027 fiscal year. Finance Minister will move for the bill's consideration and seek its passage.

This will mark a key step in implementing the government's budgetary plans and economic policies for the upcoming year.

Finance Minister is also slated to introduce a bill in the Lok Sabha to amend key corporate laws, according to the House agenda.

The proposed Corporate Laws (Amendment) Bill, 2026 seeks changes to the Limited Liability Partnership Act, 2008 and the Companies Act, 2013.

The Companies Act governs incorporation, corporate governance, disclosures and dissolution, while the LLP Act offers a more flexible framework with limited liability for partners.

Meanwhile, the Union Cabinet gave its approval for amendments to the Insolvency and Bankruptcy Code on March 10, clearing the way to introduce the IBC Amendment Bill in the ongoing parliamentary session.

The proposed legislative updates are based on the recommendations of a Select Parliamentary Committee chaired by Bharatiya Janata Party MP Baijayant Panda. The committee was tasked with reviewing the current bankruptcy framework. Upon completion, the committee submitted its comprehensive report in December 2025 with a central focus on speeding up the corporate resolution process.

In order to tackle the delays that are plaguing the current system, the parliamentary committee has recommended the implementation of stricter timelines for the disposal of bankruptcy cases. Along with the more stringent deadlines, the committee has now suggested granting enhanced powers to the Committee of Creditors (CoC), thus empowering lenders to drive faster and more decisive resolutions.

In addition, the proposed amendments also address gaps in the existing code by introducing two major structural frameworks. Firstly, the select committee has proposed a dedicated mechanism for cross-border insolvency in order to better manage distressed companies with international assets and foreign creditors.

- IANS