IBBI

IBBI proposes uniform valuation norms, broader fair value definition and single-valuer option for smaller debtors to cut disputes, streamline IBC processes and maximise creditor recoveries

IBBI has asked resolution professionals to place detailed Section 29A compliance notes before CoCs, stressing due diligence and transparency to reduce legal challenges in insolvency cases

The insolvency regulator has proposed mandatory beneficial ownership disclosures by bidders under the Insolvency and Bankruptcy Code to improve due diligence and prevent misuse of Section 32A immunity

IBBI removes sale of company as going concern in liquidation; now only asset sales allowed, shifting focus strictly to terminal liquidation process

IBC and PMLA have often clashed with each other in cases where the assets of an entity undergoing insolvency have been attached by the ED for money laundering activities

The Insolvency and Bankruptcy Board and the Enforcement Directorate have arrived at a solution to address the problem related to the interface between the insolvency law and the PMLA in resolving stressed assets. "I hope that in a month or two, we should be able to issue a circular as to how to go about it so as to solve the problem," Insolvency and Bankruptcy Board of India (IBBI) Chairperson Ravi Mital said on Wednesday. There have been issues in resolution of certain cases under the Insolvency and Bankruptcy Code (IBC) where there have been suspected assets involving black money. Under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate (ED) can attach such assets. The IBC provides a moratorium on assets of an entity undergoing insolvency resolution process. "There is a problem in the interface between the IBC and the PMLA. There is a case pending in the Supreme Court and we faced problems in some cases. So we have had discussions with ED and we have arrive

The IBBI has proposed imposing a cap on the number of assignments that insolvency professionals (IPs) can handle across key roles, in a bid to improve efficiency and ensure equitable distribution of work. Currently, IPs are restricted to a maximum of 10 assignments as resolution professionals (RPs) in corporate insolvency resolution processes (CIRPs), of which not more than three can involve admitted claims exceeding Rs 1,000 crore each. The proposed changes will broaden this ceiling to cover IRP and liquidator roles as well, recognising the comparable complexity and time demands of these assignments, the IBBI said in a discussion paper on Tuesday. The move comes amid concerns that a small group of IPs is handling a disproportionately large number of assignments in some instances up to 25 cases while newly registered professionals face entry barriers due to uneven distribution of work. As of March 31, 2025, out of 4,527 registered IPs, 2,198 held valid authorisations for assignment

The regulator has also sought audit extracts from creditors to help resolution professionals prepare complete and reliable IMs for corporate insolvency cases

The IBBI has proposed making it mandatory for the committee of creditors (CoC) to formally record its deliberations on the eligibility of resolution applicants under Section 29A of the IBC Code aimed to enhance transparency in the corporate insolvency resolution process (CIRP). Section 29A of the Insolvency and Bankruptcy Code (IBC) lays down the ineligibility criteria for persons who can submit a resolution plan for a corporate debtor undergoing the insolvency process. Provisions under the section prevent certain individuals and entities from acquiring or taking control of a stressed company if they have a history of defaults, financial irregularities, or criminal activity. The proposed amendment to CIRP norms will require such discussions to be documented in meeting minutes, based on due-diligence reports, affidavits from applicants, and other information in the resolution plan, according to a release. The board said the move will improve transparency, reduce litigation and ...

The idea behind the proposed changes to IBC regulations is to bring more transparency and procedural fairness to corporate insolvency resolution

In a May notification, the Board allowed resolution professionals to invite resolution plans for not just the company as a whole but also for sale of one or more of its assets

Amendments to IBBI regulations enable flexibility in insolvency resolution by permitting asset-wise resolution plans with committee of creditors' approval

The new zone-wise panel of insolvency professionals will be valid from July 1 to December 31, 2025, aimed at reducing delays in NCLT and DRT appointments

IBBI data reveals 30,000 cases with defaults of Rs 13.8 trillion settled pre-admission under IBC till December 2024; creditor recovery at 32.8 per cent by March 2025

Creditors recovered ₹67000 crore through IBC in FY25 a 42% jump from FY24 aided by record corporate resolutions and higher NCLT capacity after new appointments

Insolvency and Bankruptcy Board of India Executive Director Jithesh John observed that there was a noticeable improvement in credit discipline with 30,310 cases settled prior to admission

Over 30,000 cases were settled before their admission in the Insolvency and Bankruptcy Code (IBC) till December 2024, covering defaults worth Rs 13.78 lakh crore, a top IBBI official said on Saturday. This proves that the provisions of the Insolvency and Bankruptcy Code (IBC) have prompted debtors to take early action in distress situations, marking a positive shift in their behaviour, he said. "There's a noticeable improvement in credit discipline, with 30,310 cases settled prior to admission, covering underlying defaults worth Rs 13.78 lakh crore till December 2024," said Jitesh John, Executive Director, Insolvency and Bankruptcy Board of India (IBBI). Speaking at the 8th Annual Conference on IBC organised by CII Eastern Region here, John said the RBI's Trend and Progress of Banking in India 2023-24 report indicated that of the Rs 96,000 crore recovered by scheduled commercial banks through various channels, Rs 46,000 crore came through IBC, highlighting its central role. He adde

"We are examining the order and seeing what learnings can be taken from there in terms of IBC regulations and processes," the government official said

The Insolvency and Bankruptcy Board of India is finalizing a set of proposals aimed at speeding up resolution

Of the total cases ending in liquidation, 211 had admitted claims of more than Rs 1,000 crore, with aggregate claims of Rs 9.59 lakh crore