class="MsoNormal" style="text-align: justify;">The Insolvency and Bankruptcy Board of India (IBBI) on June 02, 2026, issued the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Second Amendment) Regulations, 2026, further to amend the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019.
They shall come into force on June 02, 2026.
The following has been amended:
• Omission of Regulation 2(g) from the principal regulations.
• Forms A and B have been removed, and references to these forms in Regulations 3 and 26 have been replaced with the requirement to use forms notified by the IBBI through circulars, allowing greater flexibility in updating formats without amending the regulations.
• Regulation 10 has been amended to include a reference to Section 164A in addition to Section 164 while specifying disclosures relating to transactions.
• A new Regulation 20A has been inserted to facilitate the transfer of assets where a personal guarantor undergoing bankruptcy has provided a guarantee for a corporate debtor. The bankruptcy trustee shall coordinate with the corporate debtor’s resolution professional regarding such asset transfers under Section 28A of the Code.
• Before permitting any transfer of assets, the bankruptcy trustee shall obtain approval from the committee of creditors of the personal guarantor. Once approved, the trustee shall ensure that the transfer is properly disclosed in accordance with applicable disclosure requirements under the Code and regulations.
[Notification no. - IBBI/2026-27/GN/REG150]
