The Insolvency and Bankruptcy Board of India (IBBI) on June 02, 2026, notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 to further amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
The following has been stated:-
•The Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 introduce significant changes to strengthen creditor oversight during liquidation. The Committee of Creditors (CoC) will now continue to function throughout the liquidation process, with enhanced powers to approve key decisions such as asset sales, litigation, professional appointments, liquidation costs, and liquidator fees.
•The amendments also require CoC recommendation for the appointment and replacement of liquidators and mandate approval of compromise or arrangement schemes only if creditors receive more than the liquidation value.
•Further, timelines and reporting requirements have been streamlined, including revised provisions for progress reports, disclaimer of onerous property, stakeholder claims, and early dissolution.
•The regulations also introduce a new framework for liquidator remuneration linked to distributions made to stakeholders and facilitate coordination in cases involving corporate guarantors.
•Overall, the amendments aim to improve transparency, accountability, creditor participation, and value maximisation in liquidation proceedings.
They shall come into force on June 03, 2026.
The detailed notification is given in the document below.
[Notification No.:F. No. IBBI/2026-27/GN/REG151]
