Corporate Laws (Amendment) Bill, 2026 – Joint Parliamentary Committee formally constituted
The Lok Sabha Secretariat notified the Joint Parliamentary Committee (JPC) on the Corporate Laws (Amendment) Bill, 2026 on 19 May 2026. Introduced by Finance Minister Nirmala Sitharaman, the Bill proposes significant amendments to the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. The JPC, comprising 24 members, is expected to submit its report during the Monsoon Session and will play a key role in shaping one of the most substantial corporate law reforms since 2013.
Key Takeaways:
- The Bill introduces ‘Specified IFSC LLPs’, allowing LLPs operating in IFSCs such as GIFT City greater flexibility in foreign currency transactions and reporting.
- A major objective is the decriminalisation of minor procedural defaults, replacing criminal sanctions with civil penalties to reduce compliance burdens, particularly for MSMEs and startups.
- Hybrid and fully virtual AGMs and EGMs will be formally recognised, reflecting modern corporate governance practices.
- The National Financial Reporting Authority (NFRA) will become a body corporate with enhanced regulatory and quasi-judicial powers.
- Reforms to merger and restructuring provisions, including a proposed single-bench approach, are expected to reduce costs and delays in corporate transactions.
- The JPC will closely examine CSR reforms, delegated legislative powers, and enforcement mechanisms before the Bill returns to Parliament.
SEBI’s SWAGAT-FI framework for trusted foreign investors comes into force
SEBI’s Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework becomes fully operational on 30 May 2026. The regime establishes a streamlined, risk-based route for low-risk institutional and sovereign investors and reflects India’s strategy of attracting long-term foreign capital.
Key Takeaways:
- Eligible investors include sovereign wealth funds, central banks, regulated mutual funds, insurance companies, and pension funds meeting prescribed safeguards.
- SWAGAT-FI registrations are valid for 10 years, with KYC reviews aligned to the same cycle, significantly reducing compliance requirements.
- Existing investment concentration limits applicable to FVCIs do not apply to SWAGAT-FIs, providing greater investment flexibility.
- Depositories must facilitate a unified investment and accounting framework across registration categories.
- Existing FPIs may convert to SWAGAT-FI status through their Designated Depository Participants.
- The framework complements SEBI’s broader approach of facilitating trusted institutional capital while maintaining heightened scrutiny of higher-risk foreign investments.
India’s Virtual Digital Asset sector: revised FIU-IND registration regime and evolving RBI response to stablecoins
India’s digital asset regulatory framework continues to develop through enhanced FIU-IND registration requirements and increased attention from the Reserve Bank of India (RBI) regarding stablecoins. As of March 2026, 54 Virtual Digital Asset Service Providers (VDASPs) had registered with FIU-IND, including major offshore exchanges.
Key Takeaways:
- Revised FIU-IND AML/CFT guidelines impose detailed compliance obligations on exchanges, custodians, wallet providers, NFT platforms, and other digital asset intermediaries.
- The framework expressly prohibits services involving privacy-enhancing tokens, aligning India with international regulatory trends.
- Growing global stablecoin adoption is prompting increased scrutiny from Indian regulators, although a dedicated crypto law has yet to be enacted.
- International developments, including stablecoin legislation in the United States and licensing frameworks in Hong Kong, continue to influence India’s policy approach.
- Tax enforcement remains active, with authorities closely monitoring crypto transactions, NFT sales, and cross-border transfers.
- Businesses operating in the sector should prioritise FIU registration, AML compliance, and reporting obligations as enforcement activity increases.
IBBI issues eight discussion papers – IBC implementing regulations under review
Following the Insolvency and Bankruptcy Code (Amendment) Act, 2026, the Insolvency and Bankruptcy Board of India (IBBI) published eight discussion papers seeking stakeholder feedback on implementing regulations across insolvency proceedings, liquidation, personal guarantor cases, and cross-border insolvency.
Key Takeaways:
- The papers address reforms affecting CIRP, liquidation, pre-packaged insolvency processes, personal guarantor proceedings, cross-border insolvency, avoidance transactions, and information utilities.
- Particular attention is given to the new Creditor-Initiated Insolvency Resolution Process (CIIRP), including governance and operational continuity requirements.
- Proposed cross-border insolvency rules draw on UNCITRAL Model Law principles and introduce mechanisms for recognising foreign proceedings and coordinating with overseas courts.
- The avoidance transaction proposals clarify procedures relating to the expanded look-back period introduced under the Amendment Act.
- Creditors, insolvency professionals, resolution applicants, and legal advisers should engage with the consultation process, as the resulting regulations will significantly influence insolvency practice and distressed asset transactions.
