IBBI Amends the Liquidation Process of Insolvency and Bankruptcy Board of India Regulations 2016

The Insolvency and Bankruptcy Board of India has recently made a second amendment to its Liquidation Process of Insolvency and Bankruptcy Regulation 2025. As per the notification (F. No. IBBI/2025-26/GN/REG129, dated October 14, 2025), IBBI excercising its power given under Section 196(t)(1) of the Insolvency and Bankruptcy Code, 2016, is making some changes to further amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

The new rules will be known as Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025. These will come into effect on the date of their publication in the Official Gazette. These changes apply prospectively, only to cases where liquidation as a going concern has not yet started.

The key changes include the removal of clause (f) in regulation 31A(1) in the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The word “or” is inserted in clause (c). In clause (d), for the mark “;” the mark “:” shall be replaced, and clauses (e) and (f) are removed. The letter and symbol, for the “(f)”, and the letter and symbol “(d)” shall be replaced. Additionally, Regulation 32A is also removed.