IBBI Requires Personal Guarantors to Disclose All Assets in Insolvency Cases [Read Notification]

The Insolvency and Bankruptcy Board of India (IBBI) has notified significant amendments to the Insolvency Resolution Process for Personal Guarantors to Corporate Debtors Regulations, 2019, aimed at enhancing transparency and coordination in insolvency proceedings.

Under the Insolvency and Bankruptcy Board of India (Amendment) Regulations, 2026, personal guarantors initiating insolvency must now file a comprehensive statement of assets with supporting evidence.

The disclosure covers cash, bank deposits, business interests, investments (domestic and overseas), immovable property, retirement funds, digital assets such as cryptocurrencies and NFTs, intellectual property, valuable movables, agricultural assets, receivables, contingent claims, ESOPs, and beneficial ownership interests.

Even assets held indirectly through trusts, nominees, or partnerships must be reported.

The amendments also introduce Regulation 11A, requiring resolution professionals of personal guarantors to coordinate with corporate debtor resolution professionals for asset transfers. Such transfers must be approved by creditors and disclosed in reports under Sections 106 and 112 of the Insolvency and Bankruptcy Code.

Additionally, rigid formats (Forms A, B, and C) have been replaced with Board-notified circular formats, offering procedural flexibility. References to new subsections of Section 106 have been incorporated to align with recent legislative changes.

The notification was signed by Ravi Mittal, Chairperson of IBBI, and comes into effect immediately upon publication in the Gazette

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