Insolvency and Bankruptcy Board of India (IBBI) issued the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025, effective July 4, 2025. These amendments modify the 2016 regulations concerning the corporate insolvency resolution process. Key changes include updates to Regulation 36, requiring the information memorandum to include details of all identified avoidance transactions or fraudulent/wrongful trading under the Insolvency and Bankruptcy Code, along with subsequent filings with the Adjudicating Authority. Furthermore, a new sub-regulation (2A) has been inserted into Regulation 38. This new provision states that a resolution plan cannot include the assignment of any such avoidance or fraudulent transactions unless they were disclosed in the information memorandum and communicated to all prospective resolution applicants before the deadline for submitting plans. This specific restriction does not apply to resolution plans already submitted to the Adjudicating Authority on or before the commencement date of these new regulations.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 4th July, 2025
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025
F. No. IBBI/2025-26/GN/REG128.— 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 (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely:-
(1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as ‘the principal regulations’), in regulation 36,
(i) in sub-regulation (1), after the words “insolvency commencement date”, the words and mark “, and its subsequent updates thereof”, shall be inserted.
(ii) in sub-regulation (2), after clause (h), the following clause shall be inserted, namely:-
“(ha) details of all identified avoidance transactions, if any, under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code and subsequent filings before Adjudicating Authority, as referred under sub-regulation (3A) of regulation 35A;”
3. In the principal regulations, in regulation 38, after sub-regulation (2), the following sub-regulation shall be inserted, namely: –
“(2A) A resolution plan shall not provide for assignment of any avoidance transactions under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code that were not:
(a) disclosed in the information memorandum; and
(b) intimated to all prospective resolution applicants under sub-regulation (3A) of regulation 35A before the last date for submission of resolution plans:
Provided that this sub-regulation shall not apply to any resolution plan that has been submitted to the Adjudicating Authority under sub-section (6) of section 30 on or before the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./211/2025-26]
Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were published vide notification No. IBBI/2016- 17/GN/REG004, dated 30th November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025 published vide notification No. IBBI/2025-26/GN/REG127, dated the 26th May, 2025 in the Gazette of India, Extraordinary, Part III, Section 4, No. 390 on 26th May, 2025.
