RECENT AMENDMENTS TO IBC REGULATIONS – PART III

Introduction

In this article we are going to see the recent amendments made by IBBI in respect of the following regulations-

• Insolvency and Bankruptcy Board (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2026 – Notification No. IBBI/2026-27/GN/REG/149, dated 01.06.2026 – Came into effect from 02.06.2026.
• Insolvency and Bankruptcy Board (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Second Amendment) Regulations, 2016 – Notification No. IBBI/2026-27/GN/REG/150, dated 01.06.2026 – came into effect from 02.06.2026.

Amendments to Personal guarantor regulations

The amendment omitted the definition of the term ‘Form’ in Regulation 3(e).   In the erstwhile Regulations the following forms are to be filed-

• Form A – Regulation 4(2);
• Form B – Regulation 7(1);
• Form C - Regulation 16(2).

The amendment, for the forms, substituted the words ‘such form as notified by the Board through Circular.

Insertion of new Regulation 6A

The amendment inserted a new Regulation 6A.  Regulation 6A(1)  requires the submission of a complete and true statement of all assets include the following, while filing the application under Section 94 or 95 for initiation of Insolvency Resolution Process against the personal guarantor to Corporate Debtor-

(a) Cash and bank deposits –

• Cash in hand;
• balances in savings or current accounts;
•  fixed deposits;
•  recurring deposits;
•  post office savings instruments; and
• balances held in digital wallets or similar instruments.

(b) Business Interests and Commercial Assets - Any ownership whether sole or joint,

• in a proprietorship,
• partnership,
• limited liability partnership, or
• company,

including all associated assets such as inventory, plant and machinery, tools of trade, professional equipment, and goodwill.

(c)  Investments (Domestic and Overseas) - Investments in-

• shares,
• debentures,
•  bonds,
• mutual funds,
• government securities, and
• any other financial instruments,

including investments made outside India such as foreign bank accounts, securities, and immovable properties.

(d) Immovable Property - All rights, title, or interest in immovable property, including residential, commercial, or industrial property, agricultural land, and leasehold or freehold interests.

(e) Retirement and Provident Fund Assets - Balances or entitlements in provident funds, pension funds, gratuity, superannuation funds, and any other retirement benefit schemes.

(f) Digital Assets - Cryptocurrencies, virtual digital assets, non-fungible tokens, digital tokens, and domain names or other digital properties having commercial value.

(g) Intellectual Property and Intangible Assets - Patents, trademarks, copyrights, licences, franchises, brand value, goodwill, royalty rights, and any other intangible assets.

(h) Valuable Movable Assets - Jewellery, precious metals and stones, works of art, antiques, collectibles, watches, and high-value electronic or personal assets.

(i) Agricultural Assets and Livestock - Agricultural produce, livestock, and related agricultural equipment.

(j) Receivables and Advances - Trade receivables, loans and advances given, tax refunds due, security deposits, salary arrears, and any other sums receivable.

(k) Claims and Contingent Assets - Claims under litigation or arbitration, insurance claims, expected inheritances, and beneficial interests under trusts or similar arrangements.

(l) ESOPs and Beneficial Ownership Interests - Employee stock options (ESOPs) (whether vested or unvested), securities or assets held through nominees, and any beneficial interest in any entity, trust, or arrangement.

For the purposes of an application under section 95, the creditor shall file information relating to the assets of the individual to the extent available with the creditor.

Regulation 6A (2) provides that the statement of assets shall include the following-

(a) assets owned directly or indirectly, whether in the name of the individual or otherwise;

(b) assets held individually or jointly with any other person;

(c) assets held in a fiduciary capacity, including as trustee, guardian, executor, or partner;

(d) assets held through beneficial ownership structures, including through nominees, trusts, partnerships, companies, Hindu Undivided Families, or any other arrangement conferring beneficial interest or control; and

(e) any asset over which the individual exercises control, influence, or derives economic benefit, irrespective of legal title.

Insertion of Regulation 11A

The amendment inserted a new Regulation 11A which facilitates the transfer of assets.  The newly inserted Regulation 11A provides the following-

• Where the debtor is a personal guarantor who is undergoing an insolvency resolution process, the resolution professional of such debtor who has given the personal guarantee shall coordinate with the resolution professional of the corporate debtor in respect of whom such guarantee has been given, regarding transfer of assets in the corporate insolvency resolution process of the corporate debtor in respect of whom such guarantee has been given for the purposes of section 28A. 
• For the purposes of section 28A, the resolution professional shall obtain approval from the meeting of creditors of the debtor who has given the personal guarantee for transfer of assets in the corporate insolvency resolution process of the corporate debtor in respect of whom such guarantee has been given.
• Where approval is granted by the meeting of creditors permitting the transfer, the resolution professional of the debtor shall ensure that the proposed transfer is appropriately disclosed in the report under section 106 and section 112.

Amendment to Regulation 17B

Regulation 17B provides that the Resolution Professional, in case of non-submission of repayment plan by the Personal Guarantor, shallfile an application, with the approval of creditors, before the Adjudicating Authority intimating the non-submission of a repayment plan and seek appropriate directions.

The amendment substituted the words ‘in accordance with sub-section (1A) of section 106’ for the words ‘intimating the non-submission of a repayment plan and seek appropriate directions.

Omission of forms

The amendment omitted the Form A, Form B and Form C in the principal regulations. 

Amendment to Bankruptcy Process for Personal Guarantors Regulations

The amendment omitted the Forms that are to be filed – Form A and Form B.  Form A is to be filed under Regulation 3(3)Form B is to be filed under Regulation 26(2).  The amendment required to file in lieu of the said forms in such forms that may be prescribed by the Board through its circulars.

Insertion to new regulation 20A

The amendment inserted a new Regulation 20A which facilitates the transfer of assets.  According to this new Regulation-

• Where the debtor is a personal guarantor who is undergoing a bankruptcy process, the bankruptcy trustee of such debtor who has given the personal guarantee shall coordinate with the resolution professional of the corporate debtor in respect of whom such guarantee has been given, regarding transfer of assets in the corporate insolvency resolution process of the corporate debtor in respect of whom such guarantee has been given for the purposes of section 28A. 
• For the purposes of section 28A, the bankruptcy trustee of such debtor shall obtain approval from the meeting of committee of creditors of the debtor who has given the personal guarantee for transfer of assets in the corporate insolvency resolution process of the corporate debtor in respect of whom such guarantee has been given.
• Where approval is granted by the meeting of committee of creditors permitting the transfer, the bankruptcy trustee of such debtor shall ensure that the proposed transfer is appropriately disclosed under regulation 7 and section 155.