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The Insolvency and Bankruptcy Board of India (“IBBI”), through Notification dated 13.05.2026, has released the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2026 (“IBBI Amendment Regulations”)1 to further amend the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (“IBBI Principal Regulations”).
The IBBI Amendment Regulations introduce the following amendments to the IBBI Principal Regulations:
(i) Regulation 5 of IBBI Principal Regulations:
(a) Regulation 5 provides for composition of the Governing Board of the Insolvency Professional Agency (“IPA”), which shall consist of managing director, independent director and shareholder directors. The IBBI Amendment Regulations amend Regulation 5(1) to add nominee director to the Governing Board of IPA.
(b) The definition of independent director in Regulation 5(6) has been amended to insert that inter alia, an independent director shall be an individual who is not a member of any statutory regulator that has sponsored or promoted the IPA, or that directly or indirectly holds shareholding in, or exercises control over, such IPA and who is not an independent director of any other IPA.
(c) Regulation 5(8) read with Regulation 5(9) provides that an individual may serve as an independent director for a maximum of two terms of three years, however, the second term is subject to a satisfactory review of the first term by the Governing Board. Regulation 5(9) has been amended to the effect that the second term shall require prior approval of IBBI as well.
(d) A new sub-regulation (15) has been inserted in Regulation 5 to provide that IBBI shall nominate one individual as its nominee director on the Governing Board of an IPA, and such nominee director shall have the same status, rights, duties, powers and responsibilities as other directors of the governing board.
(ii) Regulation 5A of the IBBI Principal Regulations:
(a) Regulation 5A provides for the appointment of the managing director of the IPA. Sub-regulation (6) of Regulation 5A provides that the appointment, renewal of appointment and termination of service of the managing director shall be subject to prior approval of IBBI. Vide the IBBI Amendment Regulations, sub-regulation (6A) has been inserted after sub-regulation (6) which provides that for the purpose of obtaining prior approval of IBBI under sub-regulation (6), IPA shall forward not less than two names to IBBI, at least one month prior to the expiry of the tenure of the existing managing director.
The IBBI Amendment Regulations have come into force on the date of their publication in the Official Gazette, i.e., 13.05.2026.
Footnote
1. IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2026.
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