India’s Parliament has approved amendments to the Insolvency and Bankruptcy Code (IBC) via the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, marking a significant step in how the country handles corporate financial distress. These changes aim to fix long-standing problems and make the system more attractive to investors dealing with distressed assets, both in India and abroad.
Faster Case Admission and Out-of-Court Options
The updated IBC now requires the National Company Law Tribunal (NCLT) to accept insolvency applications if a default is clearly proven. This removes previous reasons for rejection that caused long delays. This change speeds up the initial admission phase, a major hurdle that often stalled cases for months and…