Govt to introduce IBC Amendment Bill in second half of Budget Session starting March 9: FM

New Delhi: Finance Minister Nirmala Sitharaman on Monday indicated that the government plans to table the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the second half of the ongoing Budget session beginning March 9, after a parliamentary panel submitted its recommendations on the proposed changes.

Speaking to reporters a day after presenting the Union Budget 2026-27 in the Lok Sabha, Sitharaman said that the latest amendments aim to strengthen the insolvency framework by streamlining procedures, reducing delays, and bringing India’s regime closer to internationally accepted standards. She noted that the select committee of the Lok Sabha has already completed its examination of the draft legislation and filed its report in December 2025.

“I expect, subject to conditions, to table the Insolvency and Bankruptcy Code (Amendment) Bill in the second half of the Budget session starting March 9, incorporating suggestions of the committee,” Sitharaman said, adding that she also oversees the Corporate Affairs Ministry.

If passed, the Bill will mark the seventh legislative revision to the Insolvency and Bankruptcy Code since its introduction in 2016. The law has previously been amended six times, with the most recent changes enacted in 2021.

The IBC has significantly altered the dynamics between debtors and creditors by creating stricter consequences for default, thereby increasing compliance among companies and promoters. Officials have often credited the framework with improving credit discipline and resolution outcomes.

The current round of amendments traces back to August 12, 2025, when the government introduced a Bill in the Lok Sabha proposing several modifications, including measures to shorten the time taken to admit insolvency resolution applications. That Bill was subsequently referred to a parliamentary select committee, whose findings now form the basis for the forthcoming revised legislation.