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After amending the Companies Act, the Ministry of Corporate Affairs is now looking to decriminalise provisions of the Limited Liability Partnership (LLP) Act in the upcoming Winter Session of Parliament. One of the changes being proposed is allowing LLPs to issue non-convertible debentures (NCDs), a senior government official told Business Standard. “Many provisions in the Companies Act are also linked to the LLP Act. We want to ensure both are compatible and also do away with criminality when it comes to procedural offences,” the official said. Around 20 clauses in the Act relating to procedural violations will be revised. “There are various legal provisions that are harsh and judicial custody in those cases will not serve any purpose. Both the government and the industry have been working together to decriminalise various statutory provisions,” said Abhishek A Rastogi, partner at Khaitan & Co. The amendments will also address certain grey areas in the laws, such as whether LLPs can issue NCDs. According to the Companies Act 2013, while LLPs are considered body corporates, they cannot issue debentures to raise funds. Experts say only partners can contribute funds as LLPs have no rights to issue debt.