Allowance increase for IBBI Chairperson and Members updates the prescribed figure under service rules upon amendment.
The Central Government, exercising powers under section 239(2)(zd) read with section 189(5) of the Insolvency and Bankruptcy Code, 2016, amends the 2016 service rules by substituting the words "six thousand" for "one thousand" in sub rule (1) of rule 20, thereby revising the prescribed figure applicable to salary, allowances and related terms for the Chairperson and Members; the Second Amendment Rules, 2018 take effect on publication in the Official Gazette.

Public Consultation requires draft publication, economic analysis and stakeholder comments before issuing regulations and Board response.
The regulations prescribe a mechanism for the Board to make regulations under the Code including definitions, a Public Consultation process requiring publication of draft regulations with the supporting Code provision, problem statement, Economic Analysis, international norms, implementation details and comment timelines; a requirement to consider and publish public comments with a response; repetition of consultation for substantially different texts; procedural rules for amendment, periodic review of regulations, an urgency exception permitting bypass of consultation and analysis with Governing Board approval; and a power to issue non binding guidance.

Valuation requirements in liquidation: two independent registered valuers to determine average realisable value for asset or business sales.
The amendments replace the sale regulation to permit liquidators to sell assets standalone, in slump sales, as sets, in parcels, the corporate debtor or its business as a going concern, provided assets subject to security interest are sold only after relinquishment to the liquidation estate. Valuation is prescribed: existing resolution-stage valuations are averaged; otherwise the liquidator must appoint two registered valuers within seven days, who independently submit realisable-value estimates after physical verification, and the average of those two estimates constitutes the sale value.

Fee obligations for insolvency professionals: annual percentage-based and periodic fees with interest for late payment.
Amendments require IPs to pay a ten thousand rupee renewal fee every five years and an annual fee of 0.25% of professional fees with Form E by 30 April; IPEs must file Form G and pay 0.25% of turnover annually by 30 April. Recognition as an IPE requires Form C with a fifty thousand rupee fee. IPEs must notify director/partner changes within seven days using Form F with a two thousand rupee fee. A 12% per annum simple interest applies to delayed fee payments.

Governing board composition and independent director safeguards shape agency governance and managing director appointment oversight.
The regulations prescribe that an insolvency professional agency's Governing Board comprise a managing director, independent directors and shareholder directors with minimum composition and residence requirements; independent directors must meet integrity and expertise criteria, have no recent pecuniary or shareholding ties to the agency, be nominated by the Board from agency proposed names, serve limited terms with a cooling off before becoming shareholder directors, and one independent director must attend Board meetings. The managing director is to be publicly selected, subject to age and term limits, committee-recommended remuneration, Board approval for appointment and termination, and is an ex officio member of key committees.

Governing Board composition sets strict director categories and independent director eligibility, reshaping information utility governance.
The amendment adds a definition of the Board and replaces regulation 9 to mandate Governing Board composition (managing director, independent directors, shareholder directors) with residency and majority requirements, detailed independent director eligibility, nomination and term limits including a cooling-off period, and mandatory disclosure of conflicts. Regulation 9A prescribes managing director selection by open advertisement, age and tenure limits, appointment and remuneration approval processes, removal procedures including Board and Board-level oversight, and a one-year compliance deadline for existing information utilities.

Eligibility for insolvency professional agencies: corporate form, governance, net worth and ownership restrictions imposed by amendment.
Registration requires an entity to be a Section 8 company with sole object to act as an insolvency professional agency, to adopt model bye laws and governance, to meet minimum net worth and paid up capital thresholds, and for the applicant, promoters, directors and shareholders to be fit and proper, with the Board considering integrity, criminal and restraint history and financial competence.

Creditor meeting and voting: expanded electronic notice, minutes distribution, e voting procedures and record preservation obligations apply.
The amendments require meeting notices to list discussion matters, voting issues, and provide relevant documents; mandate electronic circulation of minutes within forty eight hours and an extended electronic voting process for non voting members; require authorised representatives to circulate minutes and open a voting window for creditor instructions; and require authorised representatives to exercise votes by electronic means according to received instructions.

Authorised representative framework for creditor classes introduced, defining selection, claim procedures and voting mechanics in insolvency.
Amendments create a defined class of creditors and require the IRP to identify classes, propose three eligible insolvency professionals per class, and obtain their consent; creditors in a class must submit "claim with proof" in Form CA and indicate their choice of authorised representative. The IRP selects the insolvency professional with highest choices for appointment by the Adjudicating Authority; authorised representatives facilitate communication and voting but do not verify claims and are entitled to prescribed fees. Procedural timelines, EoI and resolution-plan processes, withdrawal mechanism, and avoidance-transaction milestones are also specified with updated Forms.

Insolvency Board annual accounts must use prescribed forms, be authenticated, audited by CAG and forwarded to government.
The rules require the Board to prepare its Balance Sheet, Receipt & Payment Account and Income & Expenditure Account in the prescribed Forms and Schedules, have them authenticated by finance officers and the Audit Committee Chairperson, obtain audit by the Comptroller and Auditor General within three months of year-end, and forward the audited accounts and audit report to the Central Government for laying before Parliament.

Annual report requirement compels the insolvency board to prepare a prescribed report and file it within year end deadline.
These rules require the Insolvency and Bankruptcy Board to prepare an annual report in the prescribed Form and to submit a copy to the Central Government within ninety days of the end of the financial year, providing a true and full account of its activities, policies and programmes for the previous financial year.

Commencement of Sections 227-229: notification sets May first as the operative date for those insolvency provisions.
The Central Government, under sub-section (3) of Section 1 of the Insolvency and Bankruptcy Code, 2016, appoints the 1st day of May, 2018 as the date on which Sections 227 to 229 of the Code shall come into force by Ministry of Corporate Affairs notification, implementing the statutory commencement of those provisions.

Disclosure of insolvency resolution costs required; resolution applicants must be identified within the prescribed timeframe.
Amendments mandate that references to company secretaries be replaced with secretarial auditors, define "expenses" to include fees to interim/resolution professionals, insolvency professional entities, retained professionals and other incidental costs, require item-wise disclosure of insolvency resolution process costs by the interim/resolution professional, and obligate the resolution professional to identify prospective resolution applicants within the prescribed timeframe from the insolvency commencement date. Multiple Forms (A-F) and related affidavits are revised to standardise claimant declarations, evidence attachments, and contact details.

Liquidation cost definition expanded and sale of corporate debtor as going concern authorised under amended liquidation regulations.
Amendments redefine liquidation cost to comprise liquidator fees (regulation 4), liquidator remuneration (regulation 7), costs incurred by the liquidator (regulation 24), and interest on interim finance for up to twelve months or until repayment from the liquidation commencement date. The amendments also replace 'company secretaries' with 'secretarial auditors' and permit sale of assets in parcels and the sale of the corporate debtor as a going concern.

Eligibility for Insolvency Professional registration amended to require exam success, prescribed training, disclosures, entity criteria and CPE.
Amendments require the Limited Insolvency Examination's details be published three months before each exam and make passing that examination within twelve months, completion of a prescribed pre registration course, and completion of Board approved insolvency programmes or specified professional/management experience mandatory eligibility criteria for registration. They impose continuing professional education, restrict outsourcing of statutory duties except as permitted by the Board, expand disclosure obligations on employment, panel membership and fees to be published by insolvency professional agencies, and prescribe recognition criteria and transitional compliance deadlines for insolvency professional entities.

Information utilities amendment substitutes tribunal rules reference and adds a new part to Form A, clarifying regulatory text.
The amendment replaces the reference in regulation 42 from the National Company Law Tribunal Rules, 2016 to the National Company Law Appellate Tribunal Rules, 2016 and inserts Part II into the Annexure to Form A after item 5, modifying prescribed form content for information utilities.

Appointment of ex officio member to the insolvency regulator establishes a statutory executive filling of a board seat.
Central Government appoints Shri Gyaneshwar Kumar Singh, Joint Secretary, Ministry of Corporate Affairs, as ex officio member of the Insolvency and Bankruptcy Board of India under clause (b) of sub section (1) of section 189 of the Insolvency and Bankruptcy Code, 2016, by Ministry of Corporate Affairs notification dated 22nd February 2018, replacing Shri Amardeep S. Bhatia; the notification was subsequently rescinded by a later notification.

Remuneration adjustment for insolvency regulator raises prescribed pay for chairperson and members, applied retrospectively.
The amendment rules, effective from 1 October 2016, substitute the prescribed figure in sub rule (2) of rule 4, sub rule (4) of rule 12 and sub rule (3) of rule 13 of the principal rules, effecting an adjustment to the prescribed remuneration level for the chairperson and members.

Fair value and liquidation value obligations clarified, with valuer appointment, confidentiality and evaluation matrix requirements enforced.
Amendments require the resolution professional to appoint a registered valuer within seven days to determine fair value and liquidation value using internationally accepted standards, prohibit certain persons from acting as valuers, and mandate physical verification. Valuation estimates and the information memorandum are to be provided electronically to committee members and prospective applicants only after confidentiality undertakings. The resolution professional must invite resolution plans with an evaluation matrix within prescribed pre-submission timelines, may modify the invitation with committee approval, and must submit approved plans to the adjudicating authority with certification and within the fast track timeline subject to transitional exceptions.

Valuation and evaluation matrix mandated; resolution professionals must appoint independent valuers and disclose confidential fair and liquidation values.
Resolution professionals must promptly appoint two independent registered valuers to determine fair value and liquidation value using internationally accepted valuation standards after physical verification; a third valuer may be engaged if estimates diverge materially and the average of the two closest estimates will be used. Valuers with specified relationships to the professional or debtor are disqualified. The resolution professional shall provide fair and liquidation values to committee members and prospective applicants only on receiving confidentiality undertakings, and both the resolution professional and valuers must maintain confidentiality.