UPSC Prelims Practice Questions — Lok Sabha sends Corporate Law Amendment Bill 2026 to JPC

Q1. Under the Corporate Laws (Amendment) Bill, 2026, which one of the following bodies is designated as the 'Valuation Authority' responsible for registering and recognising valuers and recommending valuation standards?

• A. Insolvency and Bankruptcy Board of India (IBBI)
• B. National Financial Reporting Authority (NFRA)
• C. Securities and Exchange Board of India (SEBI)
• D. Institute of Chartered Accountants of India (ICAI)

Q2. The Corporate Laws (Amendment) Bill, 2026 is administered by which one of the following as the nodal ministry?

• A. Ministry of Corporate Affairs
• B. Ministry of Finance
• C. Ministry of Commerce and Industry
• D. Ministry of Law and Justice

Q3. Consider the following as provisions proposed by the Corporate Laws (Amendment) Bill, 2026. Which of the above is/are NOT a correct description of the Bill's provisions?

1. It designates the Insolvency and Bankruptcy Board of India as the Valuation Authority.
2. It raises the share-capital ceiling for a 'small company' to Rs 20 crore.
3. It permits an annual general meeting through video conferencing, subject to a physical meeting at least once in every three years.
4. It abolishes the mandatory Corporate Social Responsibility obligation by repealing Section 135 of the Companies Act, 2013.

• A. 4 only
• B. 1 and 3
• C. 2 and 4
• D. 3 only

Q4. In the context of the Corporate Laws (Amendment) Bill, 2026, the term 'decriminalisation' of offences most precisely refers to which one of the following?

• A. Replacing imprisonment and criminal fines for specified procedural defaults with civil monetary penalties adjudicated in-house
• B. Granting a one-time amnesty that extinguishes all past and pending prosecutions against companies
• C. Transferring the trial of all company-law offences from special courts to the National Company Law Tribunal
• D. Removing the offences entirely from the statute so that the underlying conduct is no longer regulated