The Insolvency and Bankruptcy Board of India (IBBI) on April 15, 2026, issued a Discussion Paper on amendments to IBBI (Liquidation Process) Regulations, 2016.
The following has been stated: -
•The proposed amendments arise from gaps in the Insolvency and Bankruptcy Code (IBC), including the absence of CoC during liquidation and ambiguities in creditor rights, and were formalized through the IBC (Amendment) Act, 2026, effective April 06, 2026.
•The changes aim to strengthen the insolvency framework by expanding IBBI’s regulatory scope and aligning with global best practices.
•A key shift is replacing the Stakeholders’ Consultation Committee (SCC) with the Committee of Creditors (CoC) to oversee liquidation, along with a time-bound 180-day liquidation process.
•The amendments streamline procedures by carrying forward verified claims from CIRP, rationalizing liquidator fees, and enabling CoC oversight in key decisions, including liquidator replacement.
•They also introduce changes in liquidation costs, auction mechanisms, and compromise arrangements, ensuring better transparency and efficiency.
•Additionally, unremitted TDS/TCS is clarified as trust assets (not part of the liquidation estate), and public comments on the draft regulations are invited till April 28, 2026.
The detailed notification is given in the document below.
