The Insolvency and Bankruptcy Board of India (IBBI) is preparing a new set of regulations that will take into account the various previous Supreme Court (SC) judgments on the insolvency matters, and also the practical challenges faced during the resolution process.
According to IBBI chairperson Ravi Mital, the clash between the IBC and the Prevention of Money Laundering Act (PMLA) is one of the problem areas to be resolved. “We face issues in some cases. We had discussions with the Enforcement Directorate (ED), and we have now arrived at a solution. It will be good for both ED and IBC. We will maintain the sanctity of both laws, and try to resolve issues. In a month or so, we should be able to issue a circular to solve this problem,” he said here on Wednesday.
Paving the way for the IBC Amendment Bill 2025
Mital said that the board is preparing the draft regulations so that as and when Parliament approves the Insolvency and Bankruptcy Code (Amendment) Bill 2025 Bill, the IBBI could issue a discussion paper, and go through the consultation process.
The Bill is likely to be tabled and passed by Parliament in the next session, after vetting by the select committee.
On Wednesday, a 24-member select committee on the Bill was formed under the chairmanship of Baijayant Jay Panda.
Mital said that the IBBI will follow a robust procedure to prepare these regulations. “We have an intensive and consultative mechanism for making regulations which has helped us. None of the IBBI’s regulations have been set aside by High Courts or Supreme Court,” he said.
The IBC Amendment Bill, 2025 was introduced in Lok Sabha in August 2025 to overhaul the Code by mandating faster admission of insolvency cases, and introducing group and cross-border insolvencies.
Enhancing transparency and professional capacity
The IBBI is also planning to shift the approval of all the resolutions on an electronic platform. At the moment, the board has mandated that all liquidation will be done on Baanknet, an electronic platform launched by the Department of Financial Services (DFS) to facilitate the disposal of non-performing assets (NPAs) by public sector banks. “We use the DFS platform for liquidation auctions. We have got good results. In our board meeting, we have taken approval that all resolutions will be done on an electronic platform. It will improve the transparency, the quality of resolution plan, and the recovery,” Mital said.
At the event, the secretary at the ministry of corporate affairs (MCA) Deepti Gaur Mukherjee said that the government needs to put in place a mechanism to make the insolvency professionals future-ready. “The most important pillar of IBC implementation is insolvency professionals. IBBI has been doing regular capacity development. But this area is where we have put our minds together to come up with a structured way to make our insolvency professionals and valuers can be future ready. Whenever PUFE (preferential, undervalued, fraudulent, and extortionate) transactions that are being highlighted by the insolvency professionals come to us to take enforcement action, I find a lot of those reports are not complete or based on hypotheses,” she said. Mukherjee said that there’s a need for insolvency professionals to set up a self-regulatory system.