IBBI Amends Personal Guarantor Insolvency and Bankruptcy Framework

On June 1, 2026, the Insolvency and Bankruptcy Board of India (IBBI) notified amendments to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, and the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019.

The IBBI also issued circulars dated June 2, 2026, prescribing updated formats under both sets of regulations. These circulars replace the earlier embedded forms with formats notified separately by the Board.

The June 2026 amendments build on a series of recent changes to the personal guarantor framework. On January 31, 2024, the IBBI amended the regulations to remove the bar on appointing a resolution professional or bankruptcy trustee who had acted, or was acting, as an interim resolution professional, resolution professional, or liquidator in the corporate insolvency resolution process of the related corporate debtor.

Subsequently, on May 19, 2025, further amendments required resolution professionals, with creditors’ approval, to inform the Adjudicating Authority where a personal guarantor failed to submit a repayment plan.

On March 6, 2026, the Board introduced a framework for filing electronic forms to monitor insolvency resolution processes of personal guarantors to corporate debtors under the Insolvency and Bankruptcy Code, 2016 (IBC).

Insertion of Regulation 6A: Statement of Assets

The newly inserted Regulation 6A requires a complete and true statement of assets, along with supporting evidence, to be submitted with applications for initiating insolvency resolution proceedings under Sections 94 and 95 of the IBC.

The asset statement must cover a wide range of categories, including cash and bank deposits, business interests and commercial assets, domestic and overseas investments, immovable property, retirement and provident fund assets, digital assets such as cryptocurrencies and virtual digital assets, intellectual property and other intangible assets, valuable movable assets, agricultural assets and livestock, receivables and advances, claims and contingent assets, and ESOPs and beneficial ownership interests.

The amendment also clarifies that the disclosure must include assets held directly or indirectly, jointly with other persons, in a fiduciary capacity, through beneficial ownership structures, or in any other arrangement where the individual exercises control or derives economic benefit.

Amendment to Regulation 11

Regulation 11(3) has been amended to include a reference to Section 106(3A) of the IBC, aligning the regulations with the statutory framework governing reports submitted by the resolution professional.

Insertion of Regulation 11A: Facilitation of Transfer of Assets

Regulation 11A has been inserted to operationalise the framework for transfer of assets under Section 28A of the IBC.

Where a personal guarantor is undergoing an insolvency resolution process, the resolution professional of the personal guarantor must coordinate with the resolution professional of the relevant corporate debtor regarding any transfer of assets in the corporate insolvency resolution process.

The resolution professional must also obtain approval from the meeting of creditors of the personal guarantor before facilitating such transfer. Where approval is granted, the proposed transfer must be appropriately disclosed in the reports prepared under Sections 106 and 112 of the IBC.

Amendment to Regulation 17B and Omission of Forms

Regulation 17B has been amended to refer to compliance with Section 106(1A) of the IBC. Forms A, B and C have also been omitted from the regulations and are now prescribed through a separate IBBI circular.

Key Amendments to the Bankruptcy Process Regulations

Amendments to Regulations 3 and 10

The amendment substitutes the reference to “Form A” in Regulation 3(3) with “such form as notified by the Board through circular”. Regulation 10(3)(h) has also been amended to include a reference to Section 164A of the IBC after the existing reference to Section 164.

Insertion of Regulation 20A: Facilitation of Transfer of Assets

The amendment inserts Regulation 20A relating to transfer of assets for the purposes of Section 28A of the IBC. The provision requires the bankruptcy trustee of a personal guarantor undergoing a bankruptcy process to coordinate with the resolution professional of the relevant corporate debtor regarding transfer of assets in the corporate insolvency resolution process.

Before undertaking any such transfer, the bankruptcy trustee must obtain approval from the committee of creditors of the personal guarantor. Where approval is granted, the proposed transfer must be appropriately disclosed under Regulation 7 and Section 155 of the IBC.

The amendment also substitutes the reference to “Form B” in Regulation 26(2) with “such form as notified by the Board through circular” and omits Forms A and B from the regulations.