The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2026 on 19 May 2026 to amend Regulation 27 of the CIRP Regulations, 2016. The amendment introduces a simplified valuation mechanism for corporate debtors classified as Micro, Small and Medium Enterprises (MSMEs) under the MSMED Act, 2006. Under the revised provision, the resolution professional is required to appoint one set of registered valuers for MSME corporate debtors. However, the committee of creditors may decide, with recorded reasons, to appoint two sets of registered valuers where circumstances justify additional valuation scrutiny. The amendment aims to reduce procedural complexity, lower compliance costs, and improve efficiency in insolvency resolution proceedings involving MSMEs. By granting flexibility to appoint additional valuers only in exceptional cases, the revised framework balances cost-effectiveness with transparency and reliability in valuation. The amendment came into force immediately upon publication in the Official Gazette.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 19th May, 2026
International Financial Services Centres Authority (Fund Management) (Amendment) Regulations, 2026
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second
Amendment) Regulations, 2026.
F. No. IBBI/2026-27/GN/REG141.—In exercise of the powers conferred by 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. (1) These regulations may be called Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2026.
(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, in regulation 27, after sub-regulation (1), the following proviso shall be inserted, namely: –
“Provided that, in respect of a corporate debtor classified as a micro, small or medium enterprise under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the resolution professional shall appoint one set of registered valuers, unless the committee decides, for reasons to be recorded in writing, to appoint two sets of registered valuers.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./96/2026-27]
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) (Amendment) Regulations, 2026 published vide notification No. IBBI/2025-26/GN/REG135, dated the 25th February, 2026 in the Gazette of India, Extraordinary, Part III, Section 4, No.143 on 25th February, 2026.
