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The insolvency regulator on Thursday proposed the withdrawal of interim moratorium protection for personal guarantors to a stressed firm, seeking to align the regulation with the recently amended bankruptcy law to ensure such guarantors don’t abuse the relief to stall recovery proceedings. Before the latest amendment to the Insolvency and Bankruptcy Code (IBC), an interim moratorium would kick in from the time an insolvency application was filed against personal guarantors. This prevented creditors from proceeding with recovery while the application was pending with the adjudicating authority.
The bankruptcy watchdog on Tuesday proposed a raft of steps, including the exclusion of completed or unaffected housing projects from the rescue process with financial creditors’ approval, as it sought to streamline regulations and expedite insolvency resolution in the real estate sector. In a discussion paper, the Insolvency and Bankruptcy Board of India (IBBI) also sought to ring-fence project-wise cash flows to curb diversion or misuse of funds. It wants to mandate resolution professionals to keep project-wise books of accounts and ensure all receipts and payments relating to a project are routed through the designated bank account.
The government is examining a sector-specific insolvency framework for insurance companies under the Insolvency and Bankruptcy Code (IBC), similar to the one for the real estate sector. Additional protection for insurance policyholders may be a key feature of the framework. Besides, the proposed changes might also clearly define the respective roles of the Insurance Regulatory and Development Authority of India (IRDAI), the insolvency regulator IBBI and the adjudicators — NCLT and NCLAT— for bankruptcy settlement in the sector. However, insurance policyholders may not necessarily receive rights equivalent to homebuyers in the real estate insolvency regime.
On May 26, on the sidelines of the Quad foreign ministers' meeting in New Delhi, India and the United States signed a bilateral framework to secure the supply of critical minerals and rare earths. The same day, the four Quad nations; India, the US, Australia, and Japan, unveiled the Quad Critical Minerals Initiative Framework, pledging to mobilise up to $20 billion in public and private investment for mining, processing, and recycling. "This framework aims to deepen our cooperation across the entire critical minerals and rare earth supply chain, including mining, processing, recycling and related investment," External Affairs Minister S Jaishankar said at the May 26 signing. US Secretary of State Marco Rubio framed the stakes plainly. "We cannot afford to leave the foundational materials of these industries vulnerable to a single-source monopoly that could deny us these things, not just in a time of conflict, but as a leverage point contrary to our sovereign national interests," he said.
Distressed companies undergoing insolvency proceedings could get higher valuations under a new mechanism proposed by the Insolvency and Bankruptcy Board of India (IBBI). According to a circular issued by the regulator, it will be mandatory for valuers to take into account “synergistic value” and intangible assets while estimating an entity’s worth. The norms also mark a shift in the valuation approach under the Insolvency and Bankruptcy Code (IBC) from a largely asset-based reporting structure to a more holistic assessment of a company’s market value.
The bankruptcy regulator on Monday issued a circular stipulating standardised formats and documentation requirements for the valuation of companies undergoing resolution under the Insolvency and Bankruptcy Code (IBC). The aim is to put in place a scientific approach to the valuation of stressed firms-which significantly influences creditors' considerations of bid offers and revival plans-and minimise the scope for arbitrary methods. The circular followed a November 2025 discussion paper on valuation guidelines by the Insolvency and Bankruptcy Board of India (IBBI). The latest guidelines have three parts. The first part sets out general requirements regarding documentation to be maintained by the registered valuer, the minimum content of the valuation report, key parameters to be considered while valuing receivables and duties of registered valuers towards designated coordinating valuer.
A set of latest changes to the rules framed by the Insolvency and Bankruptcy Board of India (IBBI) has put additional checks and balances on the actions of the committee of creditors (CoC) involved in the resolution process of bankrupt entities. Under the revised framework, notified through IBBI (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations 2026, the CoC will now be required to provide stronger justification for key decisions taken during the resolution process. For example, the lenders will not only have to consider fair and liquidation values while evaluating bids but also undertake a mandatory market discovery exercise, including a challenge mechanism, which was previously optional in many cases. The changes suggest a shift from the long-standing principle that the CoC’s commercial wisdom is beyond judicial review. Experts argue that the amendments introduce additional safeguards on lenders’ decision-making to ensure greater transparency and value maximisation.
The Insolvency and Bankruptcy Board of India (IBBI) has changed the way defaults are authenticated and recorded under the insolvency and bankruptcy code (IBC). A notification by the board has outlined a framework under which if a debtor disputes a default, the Information Utility (IU) will put it in a separate category called “Information of Dispute”. In cases where a debtor confirms a default, an authenticated “Record of Default” will be issued. This is a crucial step because the dispute handling is a fairly ambiguous process under the IBC, and the latest amendment resolves this by ensuring that there’s a transparent and formal process to record and communicate disputes. This also impacts the initiation of insolvency proceedings.
