Budget Session 2026: Major Reforms Awaiting Parliamentary Approval

As India moves into 2026, Parliament of India carries forward several unresolved legislative reforms from the Winter Session of 2025. While the government pushed through some key changes, many high-impact bills were deferred, diluted, or referred to parliamentary committees.

The Budget Session of 2026 is expected to shift focus from discussion to implementation, shaping the government’s long-term vision of “Viksit Bharat”.

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Budget Session 2026: Major Reforms Awaiting Parliamentary Approval

What Moves Forward Into 2026

During the Winter Session, several bills were introduced but faced procedural hurdles. Many were referred to Standing Committees or Joint Parliamentary Committees (JPCs), pushing final decisions into 2026.

Key focus areas include:

Capital market reforms
Insolvency resolution
Electoral reforms
Higher education governance

Securities Markets Code Bill, 2025

The Securities Markets Code Bill, 2025 is described by the government as a “constitutional moment” for India’s financial markets.

Key Provisions:

Merges three laws:
- SEBI Act, 1992
- Depositories Act, 1996
- Securities Contracts (Regulation) Act, 1956
Aims to create a single, unified regulatory framework

Due to its wide impact on market wealth, the bill was referred to the Standing Committee on Finance in late 2025 and is expected to return to Parliament in 2026.

Concerns Raised:

Critics warn of excessive powers being concentrated with Securities and Exchange Board of India (SEBI)
Government argues unified regulation will reduce overlap and compliance confusion

Insolvency and Bankruptcy Code (IBC) Amendment Bill, 2025

The IBC Amendment Bill, 2025 seeks to strengthen India’s corporate insolvency framework.

Major Objectives:

Faster resolution of bankruptcy cases
Prevent erosion of asset value
Introduce Cross-Border Insolvency to recover assets held abroad

Issues Highlighted:

Low recovery rates for banks
Limited accountability of large promoters
Severe delays due to vacancies in the National Company Law Tribunal (NCLT)

Opposition leaders argue that legislative reform alone cannot solve institutional capacity gaps.

One Nation, One Election (ONOE)

The One Nation, One Election (ONOE) proposal aims to conduct simultaneous elections for:

Lok Sabha
State Legislative Assemblies
(Later) Local bodies

The reform was initiated through the Constitution (129th Amendment) Bill, introduced in late 2024.

Current Status:

Bill secured a simple majority in Lok Sabha
Failed to meet special majority requirement
Referred to a 39-member Joint Parliamentary Committee
JPC report due by the last week of the Budget Session 2026

Key Arguments:

Government: Reduces election costs and repeated Model Code of Conduct disruptions
Opposition: Threatens federalism and the Constitution’s basic structure

Exam-Oriented Key Facts

Budget Session 2026 to decide fate of major pending reforms
Securities Markets Code Bill merges three financial laws
IBC Amendment introduces cross-border insolvency
ONOE requires constitutional amendment with special majority
ONOE bills under review by a 39-member JPC
Focus on governance reforms under Viksit Bharat vision

Question & Answer

Q1. The Securities Markets Code Bill, 2025 seeks to merge how many existing laws?
(a) Two
(b) Three
(c) Four
(d) Five
Answer: Three

Q2. Which committee is examining the Securities Markets Code Bill, 2025?
(a) Public Accounts Committee
(b) Joint Parliamentary Committee
(c) Standing Committee on Finance
(d) Estimates Committee
Answer: Standing Committee on Finance

Q3. The IBC Amendment Bill, 2025 introduces which new framework?
(a) Digital Insolvency
(b) State Insolvency
(c) Cross-Border Insolvency
(d) Pre-Pack Insolvency
Answer: Cross-Border Insolvency

Q4. The One Nation, One Election proposal requires which type of majority to pass?
(a) Simple majority
(b) Absolute majority
(c) Special majority
(d) Presidential assent only
Answer: Special majority

Q5. How many members are part of the Joint Parliamentary Committee reviewing ONOE bills?
(a) 21
(b) 31
(c) 39
(d) 45
Answer: 39

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