The Insolvency and Bankruptcy Board of India (IBBI) on April 15, 2026, issued the notification regarding the Discussion Paper on proposed amendments to the IBBI (Voluntary Liquidation Process) Regulations, 2017.
The following has been stated namely: -
• The discussion paper proposes updates to the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, aligning them with the new amendments and improving procedural clarity.
• Liquidators must now provide written reasons for claim rejections and communicate decisions within 7 days. Stakeholders can “approach” the Adjudicating Authority (instead of “appeal”), ensuring transparency and timely communication.
• A new Regulation 42 allows termination of voluntary liquidation proceedings under specific conditions (e.g., solvency, no fraud, stakeholder protection), with defined procedures and reporting requirements.
• Forms are moved from regulations to circulars for easier updates, and references to omitted Sections 38–42 are removed, with corresponding adjustments made to maintain legal consistency and functionality.
Comments may be sent by April 28, 2026 in the prescribed manner.
