India Moves to Boost Buybacks and Fast-Track Mergers
India’s Finance Minister Nirmala Sitharaman introduced the Corporate Laws (Amendment) Bill, 2026, proposing changes to allow certain companies to conduct two share buybacks a year instead of one, with a minimum six-month gap. The bill also aims to decriminalize some defaults, replacing criminal penalties with civil fines, and streamline compliance for Alternative Investment Funds structured as LLPs. Experts say these measures could give companies greater flexibility in managing capital and align India’s corporate regulations with global standards.
The bill proposes simplifying “fast-track” mergers and acquisitions for companies where at least 75% of shareholders in both firms approve. This would cover holding-subsidiary mergers, small companies, and startups, and allows applications to be filed before the relevant company law tribunal. Companies undergoing liquidation under India’s insolvency framework would be barred from pursuing mergers or compromise arrangements.
Additionally, the amendments seek to expand the powers of the National Financial Reporting Authority, including stricter enforcement against auditors for professional misconduct, with penalties ranging from fines and debarring to imprisonment. The overall goal is to enhance ease of doing business, improve compliance clarity, and strengthen corporate governance in India.
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