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Date: 2026-05-13 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sections 196,203 and 205 read with section 240 of the Insolvency and Bankruptcy

Issued by Insolvency and Bankruptcy Board of India · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The Insolvency and Bankruptcy Board of India (IBBI) issued these amendment regulations on May 13, 2026, to modify the governance framework for Insolvency Professional Agencies (IPAs). The document introduces the role of a nominee director and establishes stricter eligibility and renewal criteria for board members. These regulations come into force immediately upon their publication in the Official Gazette. **Key Points / Main Content** **Governing Board Composition** * **Nominee Director:** The IBBI will now nominate one individual to serve as a "nominee director" on the Governing Board of each IPA. * **Board Size Requirements:** The existing requirement for a minimum of seven directors is amended to specifically exclude the nominee director from this count. * **Rights and Duties:** The nominee director is granted the same status, rights, duties, and responsibilities as other directors on the board. **Director Eligibility and Restrictions** * **Conflict of Interest:** Individuals cannot serve as independent directors if they are members of a statutory regulator that sponsored the IPA or if they hold direct/indirect shareholding or control over that IPA. * **Cross-Directorship Prohibitions:** An individual is prohibited from serving as an independent director for more than one insolvency professional agency simultaneously. **Term Renewals and Performance Reviews** * **Second Term Approval:** A second term for any director is no longer automatic; it is subject to a satisfactory performance review of their first term and requires prior approval from the IBBI. **Managing Director (MD) Appointments** * **Selection Process:** To obtain Board approval for the appointment or renewal of an MD, an IPA must submit at least two names for consideration. * **Submission Deadline:** These names must be forwarded to the IBBI at least one month prior to the expiration of the current MD’s tenure. **Impact Analysis** **Insolvency Professional Agencies (IPAs)** **Impact** IPAs are subject to tighter regulatory oversight regarding their leadership composition and the selection process for their executive management. **Action Required** IPAs must accommodate an IBBI-appointed nominee director on their boards and ensure their MD recruitment process identifies at least two candidates for submission to the IBBI 30 days before a vacancy occurs. **Independent Directors** **Impact** Prospective and current independent directors face stricter eligibility criteria regarding their affiliations with regulators and other IPAs. **Action Required** Directors must ensure they do not hold concurrent independent directorships at multiple IPAs and must undergo performance reviews to qualify for term extensions. **Insolvency and Bankruptcy Board of India (IBBI)** **Impact** The IBBI gains direct representation within IPA governing boards and a more active role in approving senior management renewals. **Action Required** The Board must identify and nominate individuals to serve as nominee directors and establish a process for reviewing the performance and appointment of IPA Managing Directors.

Key Entities Referenced

Insolvency and Bankruptcy Board of India (IBBI): The primary regulatory body responsible for overseeing insolvency proceedings and the issuing authority of this amendment. Insolvency and Bankruptcy Code, 2016: The primary legislative act providing the statutory authority under which these insolvency and bankruptcy regulations are framed. IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016: The principal policy document being amended to introduce new governance standards, including provisions for nominee directors and managing director appointments. Insolvency Professional Agencies: The frontline regulatory organizations whose governing board structures and model bye-laws are the central subject of this amendment.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एxलx.x-GअID.H-1x3x0x 52026-272517 CG-DLxx-xEG-I1D3E0x5x2x0 26-272517 असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 318] नई दिल्ली, बुधवार, मई 13, 2026/विै ाख 23, 1948 No. 318] NEW DELHI, WEDNESDAY, MAY 13, 2026/VAISAKHA 23, 1948 भारतीय दिवाला और िोधन अक्षमता बोड ड अजधसचू ना नई दिल्ली, 13 मई, 2026 भारतीय दिवाला और िोधन अक्षमता बोडड (आिि डउप-जवजधया ंऔर दिवाला व्यावसाजयक एिजें सयों का िासी बोडड) (सिं ोधन) जवजनयम, 2026 फा. स.ं आई.बी.बी.आई./2026-27/िी.एन./आर.ई.िी./140.— भारतीय दिवाला और िोधन अक्षमता बोड,ड दिवाला और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196, धारा 203 और धारा 205 द्वारा प्रित्त िजियों का प्रयोग करत ेहुए, भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) जवजनयम, 2016 का और संिोधन करन े के जलए जनम्नजलजखत जवजनयम बनाता ि,ै अथाडत:् - 1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) (संिोधन) जवजनयम, 2026 ि।ै (2) य ेरािपत्र में उनके प्रकािन की तारीख को प्रवृत्त िोंग े । 2. भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) जवजनयम, 2016 (जिन्ि ेंइसम ेंइसके पश्चात् मलू जवजनयम किा गया ि)ै के जवजनयम 5 म,ें - (i) उप-जवजनयम (1) के खडं (ख) म,ें अंत म ेंआने वाले “और” िब्ि का लोप दकया िाएगा; 3460 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] (ii) उप-जवजनयम (1) के खडं (ग) में अंत में आन े वाले “।” जचह्न के स्ट्थान पर “; और” जचह्न और िब्ि रखा िाएगा । (iii) उप-जवजनयम (1) म,ें खडं (ग) के पश्चात ्जनम्नजलजखत खडं अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:- “(घ) नामजनिेजिती जनििे क ।” (iv) उप-जवजनयम (1) के परन्तुक म,ें “न्यूनतम सात जनिेिक” िब्िों के पश्चात ्“नामजनिेजिती जनिेिक को छोड़कर” िब्ि अंतःस्ट्थाजपत दकए िाएंगे । (v) उप-जवजनयम (6) म,ें - (क) खडं (छ) म ेंअतं म ेंआने वाले “।” जचह्न के स्ट्थान पर “;” जचह्न रखा िाएगा; (ख) खडं (छ) के पश्चात,् जनम्नजलजखत खडं अंतःस्ट्थाजपत दकए िाएंगे, अथाडत्:- “(ि) िो दकसी ऐसे सांजवजधक जवजनयामक का सिस्ट्य निीं ि ै जिसने दिवाला व्यावसाजयक एिेंसी को प्रत्यायोजित या प्रोन्नत दकया ि,ै या िो प्रत्यक्षतः या अप्रत्यक्षतः ऐसी दिवाला व्यावसाजयक एिेंसी में िेयर धाठरत करता ि ैया उस पर जनयंत्रण रखता ि;ै और (झ) िो दकसी अन्य दिवाला व्यावसाजयक एिेंसी का एक स्ट्वतत्रं जनिेिक निीं ि ै।” (vi) उप-जवजनयम (9) के स्ट्थान पर जनम्नजलजखत रखा िाएगा, अथाडत्:- “(9) उप-जवजनयम (8) म ें जनर्िडष्ट िसू री कायाडवजध, िासी बोडड द्वारा प्रथम कायाडवजध के संतोषप्रि कायडजनष्पािन के पुनर्वलड ोकन और बोडड के पूवड अनुमोिन के अधीन िोगी ।” (vii) उप-जवजनयम (14) के पश्चात्, जनम्नजलजखत उप-जवजनयम अंतःस्ट्थाजपत दकया िाएगा, अथाडत:् - “(15) बोडड एक व्यजष्ट को दकसी दिवाला व्यावसाजयक एिेंसी के िासी बोडड में नामजनिेजिती जनिेिक के रूप म ें नामजनिेजित करेगा और ऐसे नामजनिेजिती जनिेिक की विी िजै सयत, अजधकार, कतव्यड , िजियां और उत्तरिाजयत्व िोंगे िैसे दक िासी बोडड के अन्य जनििे कों के िैं ।” 3. मूल जवजनयमों के जवजनयम 5क में, उप-जवजनयम (6) के पश्चात्, जनम्नजलजखत उप-जवजनयम अंतःस्ट्थाजपत दकया िाएगा, अथाडत:् - “(6क) उप-जवजनयम (6) के अधीन प्रबंध जनििे क की जनयुजि या उसकी जनयुजि के नवीकरण के जलए बोडड का पूव-ड अनुमोिन प्राप्त करन े के प्रयोिनाथड, कोई दिवाला व्यावसाजयक एिेंसी, बोड ड को जवद्यमान प्रबंध जनििे क की कायाडवजध की समाजप्त से कम से कम एक मास पूव डकम से कम िो नाम अग्रेजषत करेगी ।” रजव जमत्तल, अध्यक्ष [जवज्ञापन-III/4/असा./88/2026-27] ठिप्पण: भारतीय दिवाला और िोधन अक्षमता बोड ड(आिि डउप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोड)ड जवजनयम, 2016, भारत के रािपत्र, असाधारण, भाग 3, खंड 4, सं. 421, तारीख 22 नवम्बर, 2016 में अजधसूचना सं. आई.बी.बी.आई./2016-17/िी.एन./आर.ई.िी.001, तारीख 21 नवम्बर, 2016 द्वारा प्रकाजित दकए गए थ े और उनमें अंजतम संिोधन भारत के रािपत्र, असाधारण, भाग 3, खंड 4, स.ं 78, तारीख 29 िनवरी, 2025 म ें अजधसूचना सं. आई.बी.बी.आई./2024-25/िी.एन./आर.ई.िी.117, तारीख 28 िनवरी, 2025 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोडड (आिि डउप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) (संिोधन) जवजनयम, 2025 द्वारा दकया गया था ।[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, the 13th May, 2026 Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2026 F. No. IBBI/2026-27/GN/REG/140.— In exercise of the powers conferred by sections 196,203 and 205 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Model Bye- Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, namely:- 1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2026. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, (hereinafter referred to as ‘the principal regulations’), in regulation 5, (i) in sub-regulation (1), in clause (b), the word “and” occurring at the end, shall be omitted; (ii) in sub-regulation (1), in clause (c), for the punctuation mark “:” occurring at the end, the words and punctuation mark “; and” shall be substituted; (iii) in sub-regulation (1), after clause (c) the following clause shall be inserted, namely:- “(d) nominee director.”; (iv) in the proviso to sub-regulation (1), after the words “minimum seven directors”, the words “excluding the nominee director” shall be inserted; (v) in sub-regulation (6), (a) in clause (g), for the punctuation mark “.” occurring at the end, the punctuation mark “;” shall be substituted; (b) after clause (g), the following clauses shall be inserted, namely: — “(h) who is not a member of any statutory regulator that has sponsored or promoted the insolvency professional agency, or that directly or indirectly holds shareholding in, or exercises control over, such insolvency professional agency; and (i) who is not an independent director of any other insolvency professional agency.” (vi) for sub-regulation (9), the following shall be substituted namely: - “(9) The second term referred to in sub-regulation (8) shall be subject to a satisfactory performance review of the first term by the Governing Board and prior approval of the Board.”; (vii) after sub-regulation (14), the following sub-regulation shall be inserted, namely: - “(15) The Board shall nominate one individual as its nominee director on the Governing Board of an insolvency professional agency, and such nominee director shall have the same status, rights, duties, powers and responsibilities as other directors of the governing board.” 3. In the principal regulations, in regulation 5A, after sub-regulation (6), the following sub-regulations shall be inserted, namely:- “(6A) For the purpose of obtaining prior approval of the Board under sub-regulation (6) for appointment or renewal of appointment of the managing director, an insolvency professional agency shall forward not less than two names to the Board, at least one month prior to the expiry of the tenure of the existing managing director.” RAVI MITAL, Chairperson [ADVT.-III/4/Exty./88/2026-27] Note: The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG001 dated 21st November, 2016 in the Gazette of India, Extraordinary, Part III, Sec.4, vide No. 421, dated 22nd November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2025 published vide Notification No. IBBI/2024-25/GN/REG117 dated 28th January 2025 in the Gazette of India, Extraordinary, Part III, Section 4, No. 78 on 29th January 2025. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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