The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency Resolution Process for Corporate Persons (Fourth Amendment) Regulations, 2026, introducing important changes aimed at strengthening creditor participation and tightening control over insolvency costs.
Under the amendment, the composition of the Committee of Creditors (CoC) has been revised to include the 18 largest unrelated operational creditors. If fewer than 18 such creditors exist, all must be included. This change ensures broader representation and prevents conflicts of interest.
A new provision, Regulation 16E, mandates that when non-bank creditors hold more than 66% of voting shares, the resolution professional must invite…