Parliamentary panel on Corporate Laws Amendment Bill hears views of NFRA, Finance Ministry officials
New Delhi, June 24
The Joint Committee of Parliament examining the Corporate Laws Bill, 2026, heard views of Finance Ministry officials and the National Financial Reporting Authority on Wednesday as it gathers stakeholder views for proposed changes to the legislation.
The Bill seeks to amend the Limited Liability Partnership Act, 2008 and the Companies Act to facilitate ease of doing business, decriminalise minor procedural defaults and modernise India's corporate governance architecture.
The Joint Committee, headed by BJP MP Sudheer Gupta, is examining the Bill introduced by Finance and Corporate Affairs Minister Nirmala Sitharaman in the Lok Sabha on March 23.
On Wednesday, NFRA Chairperson Nitin Gupta presented his views to the committee with Full Time Member Smita Jhingran and other officials also present.
Finance ministry officials also presented their views to the panel.
The proposed amendments aim to rationalise penalties and shift several minor procedural lapses from criminal liability to monetary penalties. NFRA is under the administrative control of the Corporate Affairs Ministry.
The reforms are also aimed at streamlining regulatory processes to reduce litigation and create a more facilitative environment for companies and LLPs.
The Bill proposes changes to modernise the country's corporate governance framework while reducing compliance burden. By moving minor procedural defaults out of the criminal ambit, the amendments are expected to lower litigation risk for businesses and LLPs. The committee is examining how these changes balance ease of doing business with accountability and investor protection.
The Corporate Laws (Amendment) Bill, 2026 was referred to the joint committee after its introduction in March. The panel is expected to submit its report after completing consultations with regulators, industry bodies and experts.
The amendments passed by Parliament would apply to companies governed under the Companies Act and LLPs registered under the 2008 Act, aligning penalty structures and compliance requirements with current business practices.
The government has positioned the Bill as part of broader reforms to simplify corporate compliance and encourage formalisation.
— ANI
Reader Comments
Finally, some pragmatic reform! As someone who works in corporate law, I've seen first-hand how minor procedural lapses like filing delays can spiral into criminal cases. This will save countless hours in courts. But we must ensure investor protection isn't compromised — balance is everything. 👏
Interesting to see India's approach. Having worked in both US and Indian regulatory environments, I think moving from criminal to civil penalties for procedural defaults is a sensible evolution. It aligns more with global best practices while keeping accountability intact.
The Bill sounds promising but I'm concerned about NFRA's role. They're supposed to oversee audit quality, but overlapping with MCA functions could create confusion. Also, need clarity on what counts as 'minor' default — vague definitions can be misused. Hope the committee addresses these points.
As an auditor, I welcome this reform. Huge relief for small and medium LLPs who often miss procedural timelines due to lack of resources. But we need proper training for compliance officers and clear SOPs. Otherwise, it's just another circular with no real change. 🇮🇳
Good to see parliamentary scrutiny on this. The Companies Act needs continuous updating — our business environment is changing fast. I just wish the process was faster. We've been talking about 'ease of doing business' for years, and ground reality still has a lot of red tape. Hope this Bill truly delivers.
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