FM to Table Finance Bill and Corporate Law Reforms in Parliament

New Delhi (IANS): Finance Minister Nirmala Sitharaman will table two landmark pieces of legislation—the Finance Bill, 2026, and the Corporate Laws (Amendment) Bill, 2026—in Parliament this Monday.

The Finance Bill, 2026, enacts the Central Government’s financial proposals for the 2026–2027 fiscal year. During the session, the Finance Minister will move the bill for consideration and seek its formal passage. This move implements the government’s budgetary roadmap and economic policies for the coming year.

According to the House agenda, the Finance Minister also intends to introduce a bill in the Lok Sabha to overhaul key corporate laws. This Corporate Laws (Amendment) Bill, 2026 modifies the Limited Liability Partnership (LLP) Act, 2008, and the Companies Act, 2013. While the Companies Act dictates incorporation and governance, the LLP Act provides partners with a flexible framework and limited liability.

In a related development, the Union Cabinet approved amendments to the Insolvency and Bankruptcy Code (IBC) on March 10. This clearance allows the government to introduce the IBC Amendment Bill during the current session.

These legislative updates follow recommendations from a Select Parliamentary Committee led by BJP MP Baijayant Panda. After reviewing the bankruptcy framework, the committee submitted a comprehensive report in December 2025 aimed at accelerating corporate resolutions.

To resolve systemic delays, the committee suggests enforcing stricter deadlines for bankruptcy cases. Furthermore, the proposal grants the Committee of Creditors (CoC) enhanced powers, allowing lenders to drive faster, more decisive resolutions. Finally, the amendments introduce a dedicated framework for cross-border insolvency to manage distressed companies with international assets and foreign creditors.