Insolvency and Bankruptcy Code (Amendment) Act, 2026 receives Presidential assent 6 April 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 received Presidential assent on 6 April 2026 following parliamentary approval. The Act introduces significant reforms to the IBC framework, targeting delays, value erosion, and alignment with global best practices, while reinforcing its role as a business rescue mechanism.
Key Takeaways:
- Applications under Sections 7, 9, and 10 must now be admitted within 14 days of confirming default, with reasons required for delays.
- A new Creditor-Initiated Insolvency Resolution Process (CIIRP) allows financial creditors (51% threshold) to initiate a pre-NCLT resolution process.
- Withdrawal of applications post-admission is restricted, requiring 90% CoC approval before issuance of resolution plan invitations.
- Avoidance transaction provisions are strengthened, with expanded scope and independent continuation of proceedings.
- Provisions for an electronic insolvency portal and cross-border insolvency framework (based on UNCITRAL principles) are introduced.
- The CoC’s role extends into liquidation, and claims not included in a resolution plan are extinguished upon implementation.
RBI Monetary Policy Committee holds repo rate at 5.25% April 2026 Meeting
The RBI’s Monetary Policy Committee held the repo rate at 5.25% in its April 2026 meeting, maintaining a neutral stance amid global uncertainty, particularly from rising oil prices and geopolitical risks.
Key Takeaways:
- Repo rate remains at 5.25%; SDF at 5.00%; MSF and Bank Rate at 5.50%.
- Neutral stance retained, with decisions remaining data-dependent.
- CPI inflation for FY 2026–27 projected at 4.6%, with upward pressure from global commodity prices.
- GDP growth projected at ~6.9%, supported by domestic demand and investment.
- Forex reserves at ~USD 696 billion provide a buffer against external volatility.
- Rate trajectory will depend on inflation trends and geopolitical developments ahead of the June 2026 meeting.
Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) comes into force 15 April 2026
The Companies Compliance Facilitation Scheme, 2026 came into force on 15 April 2026 and runs until 15 July 2026, providing a limited window for companies to regularise filing defaults at reduced cost and improve compliance status.
Key Takeaways:
- Pending filings can be completed at 10% of additional fees otherwise payable.
- Dormant status (50% fee) and strike-off (25% fee) options are available.
- Immunity from prosecution may apply where filings are completed within the scheme window.
- The scheme covers key filings under the Companies Act, 2013, including annual returns and financial statements.
- The scheme is expected to improve MCA-21 registry data quality, with implications for due diligence and transactions.
SEBI (Mutual Funds) Regulations, 2026 come into force 1 April 2026
SEBI’s Mutual Funds Regulations, 2026 came into effect on 1 April 2026, replacing the 1996 framework in the first major overhaul of the sector in nearly three decades, with a focus on transparency, cost rationalisation, and modernisation.
Key Takeaways:
- A Base Expense Ratio (BER) framework separates fund management fees from statutory levies, improving cost transparency.
- Brokerage caps are reduced across cash and derivatives segments, lowering investor costs.
- A new Life-Cycle Fund category is introduced for goal-based investing.
- Minimum equity exposure for certain categories increases to 80%, reinforcing true-to-label investing.
- A 50% cap is imposed on portfolio overlap between similar funds within an AMC.
- An optional performance-linked BER model introduces fee structures tied to fund performance.
