Industry cheers decriminalisation in new Corporate Laws Bill; seeks compliance simplification, fewer filings as next steps

The Corporate Laws (Amendment) Bill aims to improve business operations by decriminalising compliance lapses, simplifying mergers, and easing requirements for small companies. It introduces civil penalties, facilitates IFSC operations, and offers buyback flexibility. Experts call for further simplification to achieve true ease of doing business. “Buybacks are likely to have some flexibility with the bill proposing that a certain class of companies may be permitted to buy back a specified percentage, to be detailed in the rules. Currently, buybacks are restricted to 25 percent.  Additionally, for certain prescribed companies, two buybacks may be permitted in a year with a gap of six months, compared to the currently applicable 12-month window between two buybacks,” said Raj Ramachandran, Partner, JSA Advocates & Solicitors. Read more