The Insolvency and Bankruptcy Board of India (IBBI) on November 06, 2025, issued the Discussion Paper regarding the Template for declaration of Beneficial Ownership and Section 32A Affidavit to be submitted by Prospective Resolution Applicant (PRA).
The following has been stated namely: -
• The Insolvency and Bankruptcy Board of India (IBBI) is reviewing and refining the regulatory framework under the Insolvency and Bankruptcy Code, 2016 (IBC) to enhance transparency, governance, and procedural clarity in the Corporate Insolvency Resolution Process (CIRP).
• A discussion paper titled “Measures to Enhance Integrity of the CIRP” proposed amendments to Regulation 38, requiring additional disclosures in resolution plans relating to Section 32A of the IBC, which grants immunity to the corporate debtor after a bona fide change in management.
• Every Prospective Resolution Applicant (PRA) must submit:
o A Statement of Beneficial Ownership, detailing all natural persons who ultimately own or control the PRA and its ownership structure, and
o An Affidavit declaring eligibility for the benefit under Section 32A.
• The disclosure format is based on the RBI’s Master Direction on KYC (2016, updated August 2025) to ensure uniform identification of beneficial owners and consistency with broader financial regulations. Listed entities and those in regulated jurisdictions may be exempted from detailed shareholder disclosures where sufficient public data exists.
• The IBBI has released draft templates (Annexures A & B) for these disclosures and invites public comments from all stakeholders—insolvency professionals, creditors, resolution applicants, investors, and legal experts—to strengthen transparency and integrity in the resolution process.
The comments must be submitted by November 16, 2025 in the prescribed process.
