In a significant move aimed at to bring greater scrutiny to past financial dealings of distressed companies, particularly those termed avoidance transactions, the Insolvency and Bankruptcy Board of India (IBBI) has notified key amendments to the Insolvency and Bankruptcy rules. These changes are effective immediately.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025, underscore a proactive approach to unearthing and addressing financial irregularities that might have diminished a corporate debtor’s assets before insolvency proceedings began.
A central pillar of the new amendments is the mandate for enhanced disclosure in the…