Government to table IBC amendment Bill in March session
Finance Minister Nirmala Sitharaman said the government plans to introduce the Insolvency and Bankruptcy Code Amendment Bill, 2025 in the second half of the Budget session from March 9, after the parliamentary committee submitted its report
New Delhi: Finance Minister Nirmala Sitharaman on Monday said the government intends to introduce the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the second half of the Budget session beginning March 9, as the parliamentary committee has already submitted its report.
The proposed amendments to insolvency law would help further enhance the timelines and effectiveness of proceedings, as well as align India’s insolvency regime more closely with global best practices.
The parliamentary committee has submitted its report on the proposed legislation with respect to the Insolvency and Bankruptcy Code (IBC), she said during an interaction with the media a day after presenting Budget 2026-27 in the Lok Sabha.
“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 the suggestions of the committee,” the Finance Minister, who also holds the Corporate Affairs Ministry portfolio, said.
This will be the seventh amendment to the IBC Act, which was implemented in 2016. So far, it has undergone six legislative interventions since its enactment, and the last amendment was in 2021.
The IBC brought about changes in the debtor-creditor relationship and instilled fear among companies and promoters about insolvency if they fail to repay debts.
On August 12, 2025, the government introduced a Bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a raft of changes, including provisions to reduce the time taken for admission of insolvency resolution applications.
The Bill, which was referred to a select committee of the Lok Sabha, submitted its report in December 2025.
