New Delhi: The Union Cabinet has reportedly approved a set of proposed amendments to the insolvency framework and corporate governance law, clearing changes to the Insolvency and Bankruptcy Code (IBC) and the Companies Act, 2013.
The reforms fall under the jurisdiction of the Ministry of Corporate Affairs, which administers both legislations.
According to reports, the Cabinet’s decision paves the way for updates aimed at strengthening the insolvency resolution mechanism and improving the overall regulatory framework for companies.
However, detailed provisions of the approved amendments were not immediately disclosed.
The move comes after the corporate affairs ministry introduced the IBC (Amendment) Bill in the Lok Sabha in August last year. The proposed legislation suggested multiple reforms to streamline insolvency proceedings, including measures intended to reduce the time required for admitting applications under the corporate insolvency resolution process.
Following its introduction in Parliament, the Bill was referred to a Lok Sabha Select Committee for further scrutiny. The panel examined the proposed provisions and submitted its report in December 2025.
Earlier, Finance Minister Nirmala Sitharaman had indicated that the government planned to table the amended IBC legislation during the latter half of the ongoing Budget session of Parliament, which began earlier this week.
The decision is expected to be part of the government’s broader effort to strengthen the insolvency resolution framework and improve recovery mechanisms in the corporate sector.
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