The Insolvency and Bankruptcy Board of India (IBBI) has tightened disclosure requirements for Insolvency Professionals (IPs), mandating them to include comprehensive details of carry forward losses in the Information Memorandum (IM) prepared during corporate insolvency resolution processes.
In a directive issued under Section 196 of the Insolvency and Bankruptcy Code, 2016, the IBBI has asked IPs to create a dedicated section in the IM explicitly outlining the quantum and nature of carry forward losses available to the corporate debtor under the Income Tax Act, 1961.
The move follows the Board’s observation that recent IMs lacked adequate disclosures on the carry forward of losses, despite amendments made to Regulation…
