In exercise of the powers conferred by clause t of sub section 1 of section 196 read with section 240 of the Insolvency and Bankruptcy Code

## Report on the Insolvency and Bankruptcy Board of India Liquidation Process Amendment Regulations, 2021 **1. Executive Summary:** This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Liquidation Process Amendment Regulations, 2021, as notified on March 4, 2021. This amendment modifies the existing Liquidation Process Regulations, 2016, focusing on the filing of the list of stakeholders and dissemination of information. The key change involves mandating that the liquidator file the list of stakeholders with the Adjudicating Authority within forty-five days from the last date for receipt of claims and to disseminate information on the electronic platform of the Board. This amendment aims to enhance transparency and efficiency in the liquidation process by ensuring timely filing and broader accessibility of relevant information. **2. Introduction:** This report aims to provide an overview and analysis of the Insolvency and Bankruptcy Board of India (IBBI) Liquidation Process Amendment Regulations, 2021, based solely on the text of the official notification. The analysis focuses on the key changes introduced by the amendment and their potential impact. **3. Policy Overview:** * This report pertains to an *amendment* of the original policy: Insolvency and Bankruptcy Board of India Liquidation Process Regulations, 2016. * **Core Objective(s) (inferred):** To improve the efficiency and transparency of the liquidation process under the Insolvency and Bankruptcy Code, 2016, by streamlining the process of filing stakeholder lists and disseminating information. **4. Background and Rationale:** The amendment appears designed to address potential delays and information gaps in the liquidation process. By setting a specific deadline (forty-five days) for filing the list of stakeholders and mandating dissemination via the IBBI's electronic platform, the amendment aims to ensure that relevant information is readily available to stakeholders and the Adjudicating Authority in a timely manner. **5. Key Provisions / Changes:** This section focuses specifically on the changes introduced by the amendment: * **Specific Part of Original Policy Changed:** Regulation 31 of the Insolvency and Bankruptcy Board of India Liquidation Process Regulations, 2016. * **New Rule/Provision:** * Sub-regulation 2 of regulation 31 is substituted to mandate that the liquidator shall file the list of stakeholders with the Adjudicating Authority within forty-five days from the last date for receipt of the claims. * In sub-regulation 5, a new clause (d) is added, requiring information to be filed on the electronic platform of the Board for dissemination on its website. This clause applies to every liquidation process ongoing and commencing on or after the date of commencement of the Insolvency and Bankruptcy Board of India Liquidation Process Amendment Regulations, 2021. * **Difference/Effect of Change:** * The amendment introduces a specific timeline for filing the list of stakeholders, replacing the previous (presumably less specific) requirements. This should expedite the process. * The requirement to disseminate information on the IBBI's electronic platform enhances transparency by making the information accessible to a wider audience. The information must be accessible to liquidations ongoing and commencing on or after March 4th, 2021. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Liquidators: They are directly responsible for complying with the new filing and dissemination requirements. * Adjudicating Authority: They will receive the stakeholder lists within the stipulated timeframe. * Creditors and other Stakeholders: They will benefit from the increased transparency and timely availability of information regarding the liquidation process. * Insolvency and Bankruptcy Board of India: They are tasked with providing the electronic platform. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** Insolvency and Bankruptcy Board of India (IBBI) and the Adjudicating Authority. Liquidators are responsible for implementing the specific requirements. * **Timelines:** The list of stakeholders must be filed with the Adjudicating Authority within forty-five days from the last date for receipt of the claims. * Information must be filed on the electronic platform of the Board for dissemination on its website. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these specific changes are: * **Increased Efficiency:** The mandated timeline for filing the list of stakeholders should expedite the liquidation process. * **Enhanced Transparency:** Disseminating information on the IBBI's electronic platform will make the liquidation process more transparent and accessible to stakeholders. * **Improved Stakeholder Participation:** Easier access to information will enable stakeholders to participate more effectively in the liquidation process. **9. Conclusion:** The Insolvency and Bankruptcy Board of India Liquidation Process Amendment Regulations, 2021, represents a targeted effort to improve the efficiency and transparency of the liquidation process. By setting specific timelines for filing stakeholder lists and mandating information dissemination on the IBBI's electronic platform, the amendment aims to enhance stakeholder participation and ensure a more efficient and transparent liquidation process. The amendment applies to ongoing and commencing liquidations after the date of the amendment's commencement. This has the potential to significantly impact the speed and accessibility of information within the liquidation process.

Key Entities Referenced