FM Sitharaman Tables Corporate Laws Amendment Bill, Finance Bill in Lok Sabha

Union Finance Minister Nirmala Sitharaman on Monday presented the Corporate Laws (Amendment) Bill, 2026 in the Lok Sabha. The bill aims to update corporate regulations, including changes to the Limited Liability Partnership (LLP) Act, 2008 and the Companies Act, 2013, to make compliance clearer and easier for companies.

While presenting the Bill, Sitharaman said the Corporate Laws Amendment Bill aims to simplify compliance for companies and limited liability partnerships. The bill proposes rationalising penalties and converting minor procedural lapses into monetary fines.

The reforms are designed to streamline regulations, reduce litigation, and promote ease of doing business. The bill also seeks to decriminalise certain provisions, making corporate operations smoother and more facilitative for companies and LLPs.

At the same time, the finance minister also introduces the Finance Bill, 2026, which lays out the government’s financial proposals for the 2026–27 fiscal year. This bill forms the backbone of the Union Budget, detailing how taxes, spending, and revenue measures will be implemented for the year ahead.

The Budget Session resumed at 11 am, after breaks on March 19 and 20 for Ugadi and Eid. Meanwhile, Parliament is also scheduled to meet on March 28 and 29 to continue discussions and complete pending legislative business.

What Is the Finance Bill?

The Finance Bill plays a central role in the Budget process as it gives legal backing to the government’s tax and financial proposals. Once introduced, it goes through discussion and approval in both Houses of Parliament before becoming law.

This step signals that the Union Budget is moving closer to implementation. The current bill focuses on simplifying rules and easing compliance, without proposing major changes in income tax rates. Its passage will be key to bringing the government’s financial plans for 2026–27 into effect.

Corporate Laws Bill Concerns Raised

During Lok Sabha proceedings, INC MP Manish Tiwari raises concerns over the Corporate Laws Amendment Bill, calling it an excessive delegation of legislative powers. He says key matters like company exemptions, compliance, corporate social responsibility thresholds, audits and penalties are left to subordinate legislation without proper guidance.

Meanwhile, Prime Minister Narendra Modi addressed the Lok Sabha at 2 p.m., explaining India’s position on the West Asia conflict and the steps the government is taking to manage its impact.

Prime Minister Narendra Modi describes the situation in West Asia as “worrisome” and calls for a united voice from Parliament. He highlights the impact on trade, mentions India’s 53 lakh metric tonnes of strategic petroleum reserves, notes reduced oil imports due to ethanol blending and stresses the government’s focus on electric mobility.