Liquidation consultation committee advises on professionals and sale process; earnest money capped and public notices required.
The liquidator must constitute a consultation committee within sixty days to advise on appointment of professionals and sale matters, with pre constitution decisions placed before the committee; stakeholder class representative vacancies are filled by majority voting share. Auction rules prohibit non refundable participation fees, cap earnest money deposits at ten percent of the reserve price, require issuance of a public notice, and require the liquidator to intimate and record reasons if the highest bid is rejected in the next progress report.

Resolution plan modification permitted once and committees must reject late, ineligible, or non compliant plans.
Amendments impose an obligation on committees and members to comply with Board guidelines in conducting corporate insolvency resolution processes; restrict modification of invitations for expression of interest to the original manner and to a single instance; authorize the resolution professional to allow a one-time modification of a resolution plan or use a challenge mechanism; and require the committee to reject plans submitted after the committee deadline, from persons not on the final applicant list, or not meeting statutory submission requirements and regulatory conditions.

Eligibility and recognition procedures tightened for insolvency professionals, with clarified experience, net worth and application timelines.
Amendments revise eligibility by restructuring professional-experience criteria and allowing aggregation of professional and managerial experience; omit regulation 9; amend Regulation 12 to substitute "equity shares", define net worth for companies and partnerships, allow transitional compliance, and require Board acknowledgement within seven days while empowering the Board to seek documents, inspect or require personal appearances; Regulation 13 clarifies timelines for granting or rejecting recognition and prescribes issuance of the certificate in Form D; First Schedule limits concurrent resolution professional assignments and caps assignments involving very large admitted claims.

Monetary penalty realisation now requires agencies to promptly collect penalties and credit them to the statutory fund.
Amendment requires the Agency to promptly realise monetary penalties imposed by the Disciplinary Committee and to credit those sums to the statutory fund constituted for IBC purposes, converting penalty collection and remittance into an express compliance obligation of the Agency.

Appointment of professionals: arm's-length selection and conflict exclusions reshape conduct and disclosure in corporate insolvency proceedings.
Amendments clarify that an interim resolution professional or resolution professional must cease to act where their insolvency professional entity or its partners/directors represent other stakeholders; require disclosure of all former names and registered offices of a corporate debtor changed within two years prior to the insolvency commencement date in all communications and records; prescribe appointment of two registered valuers to determine fair and liquidation values and permit additional professionals appointed on an arm's-length, objective and transparent basis while prohibiting certain conflicted appointees; and mandate that fee invoices be raised in the professional's name and paid directly to their bank account.

Time-bound deemed authorisation for assignments creates automatic issuance if the agency fails to act and expands appeal timing.
Amendments to clause 12A provide that for applications received from commencement until 31 October 2021, an authorisation for assignment shall be deemed issued or renewed if the insolvency professional agency does not act within thirty days; the period "seven days" is replaced by "fifteen days"; and applicants whose applications are rejected in that window may appeal to the Membership Committee within thirty days of receipt of the rejection.

Fee deadline extension for insolvency professionals; insolvency professional entities must notify the Board of director or partner changes promptly.
The amendment permits insolvency professionals and insolvency professional entities to pay the specified fee for the relevant financial year on or before the extended deadline provided in the regulation; and requires insolvency professional entities to notify the Board within thirty days when an individual ceases to be, or joins as, a director or partner during the transitional window beginning on the amendment's commencement and ending on the specified cut-off date.

Information utilities update standards strengthened through monthly reporting, quarterly disclosure, and expanded debt default Form C requirements
Information utilities must maintain minimum service quality standards, including timelines for registration of users, issuance of records of default, and annual statements, and adopt quality standards and certifications. Users who submit Form C information must update it monthly, with default information updated within seven days of occurrence. Information utilities must also publish quarterly statistics on debt information, and Form C is expanded to cover detailed particulars of debt, security, default, and supporting documents.

Minimum default threshold for pre-pack insolvency established, determining eligibility for corporate debtor resolution under Chapter III-A.
The Central Government, exercising the second proviso to section 4 of the Insolvency and Bankruptcy Code as amended by the 2021 Ordinance, specifies ten lakh rupees as the minimum amount of default for matters relating to the pre-packaged insolvency resolution process of a corporate debtor under Chapter III-A.

Pre-packaged insolvency process enables expedited creditor-driven restructuring with prescribed valuation, voting and plan approval procedures.
The Regulations establish procedural and substantive rules for the pre-packaged insolvency resolution process, detailing definitions, eligibility and appointment of a resolution professional, creditor meeting notices and approvals, constitution and functioning of the committee (including authorised representatives), secured electronic voting and quorum rules, valuation by two registered valuers to determine fair and liquidation values, mandatory contents and evaluation mechanics for resolution plans (including tick size, significant improvement and performance security), confidentiality requirements, and prescribed forms and timelines for filing, approval, termination or vesting of management.

Pre-packaged insolvency resolution process: corporate applicants must file prescribed Form-1 with supporting creditor approvals and documentation.
The rules prescribe that a corporate applicant must initiate a pre-packaged insolvency resolution process by filing Form-1 with the Adjudicating Authority, accompanied by an affidavit and specified annexures evidencing eligibility under section 54A, details of the corporate debtor, particulars of creditors and defaults, approval and consent of creditors and the proposed resolution professional, audited and provisional financial statements, a statement of affairs, and proof of service to the Insolvency and Bankruptcy Board; filing may be electronic or physical where electronic facilities are unavailable.

Updation of claim requirement: creditors must update claims after satisfaction; professionals must file periodic CIRP delay reports.
Creditors must update their claims when satisfied, in whole or part, after the insolvency commencement date; resolution professionals must file Form CIRP 7 within specified short deadlines and then every thirty days while listed CIRP activities remain incomplete, with only one Form CIRP 7 filed at any time. The Schedule substitutes Form C to require detailed particulars for financial creditors, documentary evidence, an undertaking to update claims, and declarations on related-party status and committee eligibility.

Liquidator filing obligation: stakeholder list must be filed within prescribed period and published on the Board's electronic platform.
The amendment substitutes regulation 31(2) to require the liquidator to file the list of stakeholders with the Adjudicating Authority within a prescribed period from the last date for receipt of claims. It also inserts a provision in regulation 31(5) mandating that specified materials be filed on the Board's electronic platform for dissemination on its website, applying to liquidation processes ongoing and commencing on or after these Amendment Regulations' commencement.

Compliance officer obligations tightened: mandatory reporting, annual certificate and governing-board appointment or removal by resolution.
Amendments require a shareholder director to meet Governing Board-determined eligibility, broaden director expertise to specified fields, mandate disclosure and website posting of any authority order affecting a director's character with cessation where disqualification occurs, require Governing Board self-evaluation and publication of its report, and impose a mandatory compliance officer who must report non-compliance, submit an annual compliance certificate co-signed by the managing director, and be appointed or removed only by Governing Board resolution.