Union Cabinet approves key changes to IBC and Companies Act 2013

The Union Cabinet on Tuesday gave its approval to amendments in the Insolvency and Bankruptcy Code (IBC) as well as the Companies Act, 2013, according to ET sources.

Detailed information about the changes has not been released yet.

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The amendments, cleared by the Cabinet, fall under the purview of the Ministry of Corporate Affairs, which oversees the implementation of both laws.

In August last year, the ministry had introduced a Bill in the Lok Sabha proposing several changes to the IBC, including measures to shorten the timeline for admission of insolvency resolution applications. The Bill was subsequently referred to a Select Committee, which submitted its report in December 2025.

Last month, Finance and Corporate Affairs Minister Nirmala Sitharaman indicated that the government plans to formally introduce the IBC (Amendment) Bill, 2025 in the second half of the Budget session, which began on Monday.