The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026, effective from the date of publication in the Official Gazette. The amendments introduce several procedural changes to the voluntary liquidation framework. References to prescribed forms in multiple regulations have been replaced with forms to be notified by the Board through circulars. Regulation 12 has been renamed from “Consultation with stakeholders” to “Assistance by stakeholders.” A new Regulation 28A requires stakeholders to submit claims within the prescribed timeline and update claims whenever they are partly or fully satisfied from any source after the liquidation commencement date. Regulation 29 now mandates liquidators to record reasons for claim rejection and communicate decisions on admission or rejection within seven days. The amendments also introduce a comprehensive framework for termination of voluntary liquidation proceedings under new Regulation 42, including reporting requirements, stakeholder safeguards, and consequences following termination. Schedule I has been omitted and Schedule II has been redesignated as Schedule I.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 1st June, 2026
Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026
F.No. IBBI/2026-27/GN/REG148.— In exercise of the powers conferred by clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to further amend the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, namely: –
1. (1) These regulations may be called Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026.
(2) They shall come into force on the date of publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, (hereinafter referred to as ‘the principal regulations’), in sub-regulation (3) of regulation 10, for the words “Schedule II”, the words “Schedule I” shall be substituted.
3. In the principal regulations, in regulation 12,
(a) in the marginal heading, for the words “Consultation with stakeholders”, the words “Assistance by stakeholders” shall be substituted.
(b) in sub-regulation (1), words, numerical and mark “consulted under section 35(2)”, shall be omitted.
4. In the principal regulations, in sub-regulation (1) of regulation 14, for the words “Form A of Schedule I”, the words “such form as notified by the Board through circular” shall be substituted.
5. In the principal regulations, in sub-regulation (1) of regulation 16, for the words “Form B of Schedule I”, the words “such form as notified by the Board through circular” shall be substituted.
6. In the principal regulations, in sub-regulation (1), of regulation 17, for the words “Form C of Schedule I”, the words “such form as notified by the Board through circular” shall be substituted.
7. In the principal regulations, in regulation 18,
(a) in sub-regulation (1), for the words “Form D of Schedule I”, the words “such form as notified by the Board through circular” shall be substituted.
(b) in sub-regulation (2), for the words “Form E of Schedule I”, the words “such form as notified by the Board through circular” shall be substituted.
8. In the principal regulations, in sub-regulation (1) of regulation 19, for the words “Form F of Schedule I”, the words “such form as notified by the Board through circular” shall be substituted.
9. In the principal regulations, after regulation 28, the following shall be inserted, namely:-
“28A. Submission and updation of claims.
(1) A person, who claims to be a stakeholder, shall submit its claim, on or before the last date mentioned in the public announcement.
(2) A stakeholder shall update its claim as and when the claim is satisfied, partly or fully, from any source in any manner, after the liquidation commencement date.”
10. In the principal regulations, in regulation 29,
(i) in sub-regulation (1), for the words, numerical and mark “, as per section 40 of the Code.”, the mark “:” shall be substituted.
(ii) in sub-regulation (1), the following proviso is to be inserted:
“Provided that where the liquidator rejects a claim, he shall record in writing the reasons for such rejection.”.
(iii) sub- regulation (2), shall be renumbered as sub-regulation (3).
(iv) after proviso to sub-regulation (1), following sub-regulation shall be inserted, namely:-
“(2) The liquidator shall communicate his decision of admission or rejection of claims to the stakeholder within seven days of such admission or rejection of claims.”
(v) in sub-regulation (3),
(a) for the words “appeal to”, the word “approach” shall be substituted.
(b) the words and numerical “as per section 42 of the Code.” shall be omitted.
11. In the principal regulations, in sub-regulation (3) of regulation 38, for the words “Form H”, the words “such form as notified by the Board through circular” shall be substituted.
12. In the principal regulations, in regulation 39,
(a) in sub-regulation (5), for the words “Form G”, the words “such form as notified by the Board through circular” shall be substituted.
(b) in sub-regulation (7) and (7D), for the words “Form I”, the words “such form as notified by the Board through circular” shall be substituted.
13. In the principal regulations, after regulation 41A, the following shall be inserted, namely:-“42. Termination of voluntary liquidation proceedings.
(1) The resolution referred to in clause (a) of sub-section (5A) of section 59, shall provide for –
(a) rationale for termination of voluntary liquidation proceedings;
(b) treatment of liquidation costs; and
(c) a declaration that the termination will not result in prejudicially affecting the interest of any stakeholder.
(2) For the purposes of clause (c) of sub-section (5A) of section 59, the liquidator shall intimate the Adjudicating Authority, along with a report in such form as notified by the Board through circular, regarding termination of voluntary liquidation proceedings, accompanied by a statement that –
(a) due process for termination of voluntary liquidation proceedings has been followed; and
(b) the termination of voluntary liquidation proceedings is not initiated to defraud any person and the corporate person is solvent.
(3) Where the conditions specified under clause (a), (b) and (c) of sub-section (5A) of section 59 are satisfied, the liquidator shall, within seven days of the passing of the special resolution under clause (a) thereof or the approval of creditors under clause (b) thereof, as the case may be, intimate the Board and the Registrar of Companies along with the report prepared under sub-regulation (2), regarding termination of the voluntary liquidation proceedings.
(4) Upon termination of the voluntary liquidation proceedings under sub-section (5C) of section 59 of the Code—
(a) the appointment and term of the liquidator shall stand terminated;
(b) the liquidator shall cease to exercise any powers or functions under these regulations; and
(c) no further action shall be taken under these regulations in respect of the voluntary liquidation proceedings.”
14. In the principal regulations,
(a) ‘SCHEDULE I’ shall be omitted.
(b) ‘SCHEDULE II’ shall be renamed as ‘SCHEDULE I’.
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./137/2026-27]
Note: The Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 were published vide notification No. IBBI/2016- 17/GN/REG010, dated 31st March, 2017 in the Gazette of India, Extraordinary, Part III, Section 4, No. 130 on 31st March, 2017 and were last amended by the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2026 published vide notification No. IBBI/2025-26/GN/REG137, dated the 25th February, 2026 in the Gazette of India, Extraordinary, Part III, Section 4, No. 137 on 25th February, 2026.
