The Insolvency and Bankruptcy Board of India (IBBI) on June 08, 2026, issued the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2026 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
The following has been stated:
In regulation 16, in sub-regulation (2), in clause (a), (a) after the words “eighteen largest”, the word “unrelated” shall be inserted; (b) for the proviso, the following proviso shall be substituted, namely: - “Provided that if the number of such unrelated operational creditors is less than eighteen, the committee shall include all such unrelated operational creditors.”
After regulation 16D, the following regulation shall be inserted, namely: -
16E. Assistance to committee where creditors other than scheduled banks or public financial institutions hold significant voting share - Where creditors, other than a scheduled bank or a public financial institution as defined in clause (72) of section 2 of the Companies Act, 2013 (18 of 2013), hold more than sixty-six per cent of the voting share in the committee, the resolution professional shall— (a) invite the five largest unrelated operational creditors, which shall include the three largest authorities to whom statutory dues are owed, by value of admitted claims, to attend the meetings of the committee as observers with no voting rights; and (b) record their observations, if any, in the minutes of the meetings of the committee.
They shall come into force on June 08, 2026.
Please refer to the document attached below for more details.
[F. No. IBBI/2026-27/GN/REG153.]
