INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

DISCUSSION PAPER ON

(CREDITOR-INITIATED INSOLVENCY RESOLUTION PROCESS) REGULATIONS, 2026

I. Background

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduces a new Chapter IV-A in Part II of the Insolvency and Bankruptcy Code, 2016 (Code), providing a statutory framework for the Creditor-Initiated Insolvency Resolution Process (CIIRP). The CIIRP is aimed at enabling faster and more cost-effective restructuring with minimal business disruption.

The statutory framework under sections 58A to 58K of the Amendment Bill confers upon the Insolvency and Bankruptcy Board of India (IBBI or Board) wide regulation-making powers to operationalise the CIIRP framework. The Committee on Regulations has accordingly drafted the Insolvency and Bankruptcy Board of India (Creditor-Initiated Insolvency Resolution Process) Regulations, 2026 (CIIRP Regulations) to give effect to the legislative intent and provide a detailed procedural architecture for the process.

It is important to note that the statutory framework under sections 58A and 58B of the Amendment Bill envisages that the Central Government shall, by notification, specify: (i) the class or categories of corporate debtors eligible for CIIRP; (ii) the class of financial institutions authorised to initiate the process; and (iii) applicable thresholds and conditions.

The CIIRP framework is premised on four core objectives: (i) enabling creditor-led early intervention after default; (ii) preserving management control of the corporate debtor subject to appropriate oversight; (iii) providing a structured, time-bound pathway to a commercially viable resolution plan; and (iv) facilitating seamless conversion to the Corporate Insolvency Resolution Process (CIRP) where the CIIRP does not yield resolution within prescribed timelines or in certain other specified circumstances.

Public comments: The Board accordingly solicits comments on the draft regulations proposed below. After considering the comments, the Board proposes to make regulations under section 196 read with section 240 of the Code. The process for submission of comments is provided at Page 34.

The last date for submission of comments is 28th April, 2026.

II. Proposed Amendments

The following framework is submitted for consideration:

Creditor-initiated insolvency resolution process framework sets a time-bound route for restructuring and conversion to corporate insolvency resolution. The proposed regulations operationalise the Creditor-Initiated Insolvency Resolution Process created under the amended insolvency framework. The structure contemplates notification-based specification of eligible corporate debtors, authorised financial institutions, and applicable thresholds and conditions, while enabling creditor-led early intervention, retention of management control subject to oversight, and a time-bound route to a commercially viable resolution plan. The framework also provides for conversion to the Corporate Insolvency Resolution Process where CIIRP does not yield resolution within prescribed timelines or in other specified circumstances.