The Insolvency and Bankruptcy Board of India (IBBI) has issued the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025, through a notification dated October 14, 2025. The amendment modifies certain provisions of the Liquidation Process Regulations, 2016, with changes applying prospectively to cases where liquidation by sale as a going concern has not yet commenced. The notification primarily restructures regulatory clauses related to the modes of asset sale and committee composition. Key changes include the omission of clause (f) in regulation 31A(1), which pertains to the constitution of the Stakeholders’ Consultation Committee. Further, in regulation 32, which deals with various modes of sale during liquidation, specific revisions have been made—such as the insertion of the word “or” after clause (c), substitution of punctuation in clause (d), and the omission of clauses (e) and (f). Correspondingly, the proviso has been updated to replace references from clause (f) to clause (d). Additionally, regulation 32A, which previously governed the sale of the corporate debtor or its business as a going concern, has been omitted entirely. These amendments indicate a streamlining of liquidation procedures and a simplification of sale provisions within the liquidation framework. The notification, signed by IBBI Chairperson Ravi Mittal, takes effect upon publication in the Official Gazette.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 14th October, 2025
Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025
F. No. IBBI/2025-26/GN/REG129.—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 (Liquidation Process) Regulations, 2016, namely: –
1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette and shall apply prospectively, i.e. to cases where liquidation by sale as going concern has not commenced.
2. In the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (hereinafter referred to as ‘the principal regulations’), in regulation 31A, in sub-regulation (1), clause (f) shall be omitted.
3. In the principal regulations, in regulation 32,
i. in clause (c), after the mark “;”, the word “or” shall be inserted.
ii. in clause (d), for the mark “;” the mark “:” shall be substituted.
iii. clauses (e) and (f) shall be omitted.
iv. in the proviso, for the letter and symbol “(f)”, the letter and symbol “(d)”, shall be substituted.
4. In the principal regulations, regulation 32A shall be omitted.
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./409/2025-26]
Note: The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG005 dated 15th December, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, vide No. 460 on 15th December, 2016 and were last amended by Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2025 vide notification No. IBBI/2024-25/GN/REG121 dated the 28th January, 2025 in the Gazette of India, Extraordinary, Part III, Section 4, vide No. 82 on 29th January, 2025.
