MP Sudheer Gupta To Head Joint Parliamentary Committee On Corporate Laws (Amendment) Bill
Lok Sabha Speaker Om Birla on Monday constituted a 31-member Joint Parliamentary Committee to examine the Corporate Laws (Amendment) Bill, 2026, appointing BJP MP Sudheer Gupta as its chairperson. The committee comprises 21 members from Lok Sabha and 10 members from Rajya Sabha.
The Bill was introduced in the Lok Sabha by Finance and Corporate Affairs Minister Nirmala Sitharaman on March 23, 2026 and was subsequently referred by the Speaker to the JPC for clause by clause examination, stakeholder consultations and submission of recommendations on the proposed amendments to corporate and LLP laws.
The proposed amendment seeks to amend the Companies Act, 2013 and the Limited Liability Partnership Act, 2008 with the stated objective of reducing compliance burden, strengthening corporate governance and improving ease of doing business.
Among the key amendments, the Bill proposes decriminalisation of several procedural offences by replacing criminal punishment with civil penalties under various provisions relating to filing defaults, maintenance of records and procedural lapses. It also seeks to amend merger provisions under Sections 233 and 234 to widen the scope of fast-track mergers for startups, subsidiaries and certain classes of foreign companies.
The Bill further proposes changes to buyback provisions under Section 68 by permitting eligible companies to undertake two buybacks in a financial year subject to a six-month cooling-off period. Amendments have also been proposed to CSR related provisions under Section 135, disclosure requirements under directors' reports and governance norms relating to independent directors and auditors.
Another major proposal concerns strengthening the powers of the National Financial Reporting Authority by expanding oversight over auditors and audit firms, while stricter auditor independence norms seek to restrict certain non-audit services after completion of audit assignments.