Lok Sabha passes insolvency law amendments; Sitharaman says Bill will help maximise value for stakeholders

The Lok Sabha passed a bill to amend the Insolvency and Bankruptcy Code (IBC) on March 30, 2026. The amendments aim to streamline insolvency processes, reduce delays, and enhance investor confidence. Finance Minister Nirmala Sitharaman stated that the changes include stricter timelines for resolution, out-of-court settlement options, and provisions for cross-border insolvency. These measures are expected to improve the efficiency of the IBC framework and address concerns related to litigation and frivolous complaints. The bill replaces the underutilized fast-track process with a new creditor-initiated model, ensuring timely resolutions for stressed companies while safeguarding worker's rights.