The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act) received presidential assent on 6 April 2026, and was published in the Official Gazette as Act No. 6 of 2026. It introduces major reforms, the salient features of which are summarised below:
April 07, 2026 The Insolvency and Bankruptcy Code (Amendment) Act, 2026 The Amendment Bill has now been approved by the Parliament post the report of the Select Committee as the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act). Once in effect, the Act makes significant amendments to the Insolvency and Bankruptcy Code, 2016 (IBC) introducing several new concepts and tweaking existing concepts in light of difficulties faced to make the IBC more efficient. This note sets out a summary of the key changes. A. Corporate Insolvency 1.
Background
Insolvency and Bankruptcy Board of India (IBBI) on 22nd December 2025, amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations (CIRP Regulations) to introduce sub-regulation 3A to existing regulation 38 (Amendment).
The Insolvency and Bankruptcy Board of India (IBBI) has issued the Insolvency Professionals to act as IRPs, RPs, Liquidators and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2025, which will govern appointments for the period January 1, 2026 to June 30, 2026.
The insolvency framework governing real estate projects in India has undergone a significant transformation with the recognition of “Reverse CIRP”, a judicial innovation designed to protect homebuyers’ interests while ensuring completion of stalled real estate projects. This mechanism was recently endorsed by the National Company Law Appellate Tribunal (“NCLAT”) in the Satish Chander Verma v. Grand Reality Private Limited[1] ("Grand Reality Case").
Introduction
1 | 15 Introduction The Insolvency and Bankruptcy Code, 2016 (IBC/Code) is a landmark legislation which was enacted in 2016 to put in place a consolidated and holistic legal framework for resolution of stressed assets in India. Since its enactment, IBC has been one of the most dynamic legislations which has undergone several revisions on account of various learnings arising out of resolution of large volume of stressed assets in its initial phases.
The Insolvency and Bankruptcy Board of India (IBBI) has issued a discussion paper inviting public comments on proposals aimed at enhancing the integrity of the Corporate Insolvency Resolution Process (CIRP). The key measures proposed include:
The Insolvency and Bankruptcy Board of India (“IBBI”) recently notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2025 dated May 19, 2025 and the IBBI (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025 dated May 26, 2025 (collectively referred as “Amendment Regulations”), amending certain key provisions under the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”).