The Insolvency and Bankruptcy Board of India (IBBI) on July 02, 2026, issued Discussion Paper on Strengthening the Regulatory Framework - Amendments to CIRP Regulations, Liquidation Regulations and PG to CD Regulations.
The Insolvency and Bankruptcy Board of India (IBBI) has received stakeholder feedback highlighting procedural gaps and ambiguities in the current insolvency framework that may hinder efficient proceedings under the Insolvency and Bankruptcy Code (IBC). Key concerns include issues related to the appointment and role of registered valuers in CIRP, implications of removing interim moratorium protection for personal guarantors under the Insolvency and Bankruptcy Code (Amendment) Act, 2026, continuity of duties of resolution professionals during pending withdrawal applications under Section 12A, and the administrative burden on liquidators for seeking approval to modify stakeholder lists.
In response, IBBI has proposed amendments to multiple regulations, including the CIRP Regulations, 2016, regulations governing personal guarantors (2019), and the Liquidation Process Regulations, 2016. These amendments aim to address identified gaps, enhance procedural clarity, reduce inefficiencies, and align regulatory provisions with recent legislative changes introduced through the Amendment Act, 2026.
The proposed changes are part of IBBI’s ongoing efforts to strengthen the insolvency ecosystem, improve operational efficiency, and ensure smoother resolution and liquidation processes. The amendments are also intended to reduce unnecessary regulatory burdens and streamline procedures for stakeholders involved in insolvency proceedings.
IBBI has invited public comments on the draft proposals outlined in the discussion paper. Based on the feedback received, the Board intends to finalize the regulations under the relevant provisions of the Code. The last date for submission of comments is July 22, 2026.
