IBBI Proposes Rule Changes for Insolvency Resolution Process

08 Nov 2023 CW Team

One of the key changes proposed by the IBBI is the introduction of a pre-packaged insolvency resolution process. This process allows for the resolution of distressed companies outside the traditional insolvency framework, providing a faster and more cost-effective resolution for all stakeholders involved. The proposal suggests that pre-packaged resolution plans can be submitted directly to the adjudicating authority, reducing the time and effort required for resolution.

Another proposed change is the enhancement of the role played by the resolution professionals (RPs) in the resolution process. The IBBI suggests that RPs should have the power to monitor the progress of the resolution plan and take necessary actions to ensure compliance. These proposed changes aim to strengthen the role of RPs and improve the efficiency of the resolution process.

The IBBI also proposes changes to the committee of creditors (CoC) and the voting thresholds required for the approval of a resolution plan. The proposal suggests that the CoC should have the authority to determine the order of preference in the distribution of proceeds, providing more flexibility and transparency in the resolution process. Additionally, the IBBI proposes to lower the voting threshold required for the approval of a resolution plan, making it easier for plans to be accepted.

In an effort to increase transparency and accountability, the IBBI also proposes changes to the reporting requirements for resolution professionals. The proposal suggests that RPs should submit a detailed report to the IBBI at various stages of the resolution process, providing greater visibility into the progress made and the strategies employed.

These proposed changes by the IBBI aim to address some of the challenges faced by the current insolvency resolution process, including delays and conflicts of interest. If implemented, these changes have the potential to significantly improve the efficiency and effectiveness of the process, benefiting all stakeholders involved.

It is important to note that these proposed changes are still subject to public comments and feedback. The IBBI is open to suggestions and is expected to take into account all viewpoints before finalizing the amended rules.

The Insolvency and Bankruptcy Board of India (IBBI) has recently proposed changes to the rules governing the insolvency resolution process. These proposed changes aim to streamline and improve the effectiveness of the existing framework. One of the key changes proposed by the IBBI is the introduction of a pre-packaged insolvency resolution process. This process allows for the resolution of distressed companies outside the traditional insolvency framework, providing a faster and more cost-effective resolution for all stakeholders involved. The proposal suggests that pre-packaged resolution plans can be submitted directly to the adjudicating authority, reducing the time and effort required for resolution. Another proposed change is the enhancement of the role played by the resolution professionals (RPs) in the resolution process. The IBBI suggests that RPs should have the power to monitor the progress of the resolution plan and take necessary actions to ensure compliance. These proposed changes aim to strengthen the role of RPs and improve the efficiency of the resolution process. The IBBI also proposes changes to the committee of creditors (CoC) and the voting thresholds required for the approval of a resolution plan. The proposal suggests that the CoC should have the authority to determine the order of preference in the distribution of proceeds, providing more flexibility and transparency in the resolution process. Additionally, the IBBI proposes to lower the voting threshold required for the approval of a resolution plan, making it easier for plans to be accepted. In an effort to increase transparency and accountability, the IBBI also proposes changes to the reporting requirements for resolution professionals. The proposal suggests that RPs should submit a detailed report to the IBBI at various stages of the resolution process, providing greater visibility into the progress made and the strategies employed. These proposed changes by the IBBI aim to address some of the challenges faced by the current insolvency resolution process, including delays and conflicts of interest. If implemented, these changes have the potential to significantly improve the efficiency and effectiveness of the process, benefiting all stakeholders involved. It is important to note that these proposed changes are still subject to public comments and feedback. The IBBI is open to suggestions and is expected to take into account all viewpoints before finalizing the amended rules.

Resources

04 Jun 2026

ULCCS Showcases Cooperative Model at UN Symposium

Uralungal Labour Contract Co-operative Society (ULCCS) showcased its community-led development model at the United Nations Headquarters in New York, where it participated as a panellist at the International Symposium on Cooperative Financial Institutions held on 28–29 May 2026.Jointly organised by the United Nations Department of Economic and Social Affairs (UN DESA), the International Cooperative Banking Association (ICBA), and the International Cooperative Alliance (ICA), the symposium was held under the theme ‘Fuelling Inclusive and Equitable Growth’ and brought together policymakers,..

Infrastructure Transport

04 Jun 2026

Delhi Airport to Finalise 20-Year Master Plan

Delhi International Airport Ltd (DIAL) is finalising a 20-year master plan to guide long term infrastructure and operational development at Indira Gandhi International Airport, an official said. The operator expects the plan to reflect changes in the airline industry, shifts in the competitive landscape and evolving infrastructure requirements across terminals, airside and support services. The official said the document is likely to be ready in the next two to two-and-a-half months as the operator moves through planning stages. The plan will be prepared after consultations with airport users ..

Real Estate

04 Jun 2026

Aadhar Housing Finance Targets Rs 500 bn AUM By FY29

Aadhar Housing Finance has set a target to raise its asset under management to Rs 500 billion (bn) by the end of FY29, aiming to achieve this over the next three financial years through an 18-20 per cent loan growth trajectory. The firm focuses on the low-income segment with a ticket size of less than Rs 1.5 million (mn) and has relied on that segment to drive expansion. The company closed FY26 with an AUM of Rs 305.71 bn, reflecting the expansion in recent years, and it reported a net profit rise of 22 per cent to Rs 11.08 bn. Management indicated that gross non-performing assets stood at 1.0..