Insolvency and Bankruptcy Board of India has notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2026, published in the Gazette of India, Extraordinary, Part III, Section 4. The amendment modifies Regulations 16, 31B, and 39, and inserts new Regulation 16E in the principal regulations. Resolution professionals, committees of creditors, and operational creditors in corporate insolvency resolution processes are impacted.

1. In Regulation 16, in sub-regulation (2), clause (a), the word “unrelated” is inserted after “eighteen largest”, and the existing proviso is substituted to state that if the number of such unrelated operational creditors is less than eighteen, the committee shall include all such unrelated operational creditors.
2. New Regulation 16E is inserted after Regulation 16D, providing that where creditors other than scheduled banks or public financial institutions hold more than sixty-six per cent of the voting share in the committee, the resolution professional shall invite the five largest unrelated operational creditors — including the three largest authorities to whom statutory dues are owed by value of admitted claims — to attend committee meetings as observers without voting rights, and shall record their observations in the minutes.
3. Regulation 31B is substituted to require that all insolvency resolution process costs incurred until the first committee meeting, along with justification, be placed for committee approval at its first meeting. The resolution professional shall also place a Going Concern Assessment Report covering estimated income, expenditure, cash flows, working capital requirements, and material risks of value erosion. After the first meeting, all insolvency resolution process costs shall be incurred only with prior committee approval, with the resolution professional placing cost estimates and approvals at each subsequent meeting.
4. In Regulation 39, sub-regulation (3), clause (b) is substituted to require the committee to record its deliberations and rationale on the feasibility and viability of each resolution plan, the expected realisable value to creditors compared to fair value and liquidation value under Regulation 35, and the adequacy of market discovery during the corporate insolvency resolution process including use of a challenge mechanism or re-invitation of plans.