Parliamentary Panel Recommends Changes To Corporate Laws Framework

The Joint Parliamentary Committee (JPC) reviewing the Corporate Laws (Amendment) Bill, 2026, has proposed changes covering Corporate Governance, insolvency, audit oversight, CSR and digital compliance.

The recommendations aim to reduce compliance requirements while strengthening safeguards for investors and stakeholders. The panel has suggested measures to support reverse-flipping of Indian businesses through the International Financial Services Centre (IFSC) route, allowing eligible entities to shift overseas holding structures to India. The committee has also recommended dedicated National Company Law Tribunal benches for Insolvency and Bankruptcy Code matters to improve case resolution.

Other proposals include expanding the National Financial Reporting Authority’s (NFRA) oversight, revising CSR rules, enabling wider adoption of digital Corporate Governance practices, and allowing greater flexibility in managerial appointments.

The recommendations come as the government seeks to improve India’s corporate framework and attract businesses to establish operations within the country.