IBBI Caps IP Assignments to 10 | Limits Large Cases to 3 Under New Rule

IBBI F. No. IBBI/2025-26/GN/REG132 dated 20-11-2025

1. Overview

The Insolvency and Bankruptcy Board of India (IBBI) has notified amendments to the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, inserting a new provision — Regulation 7B, immediately after Regulation 7A.

The new regulation imposes assignment limits on individual Insolvency Professionals (IPs) to ensure effective case management and maintain the quality of insolvency administration.

2. Key Provisions of Regulation 7B – Limits on Number of Assignments

2.1 Maximum Assignment Cap

An insolvency professional who is not an Insolvency Professional Entity (IPE) shall not, at any point in time, hold more than:

10 assignments in aggregate

This includes assignments undertaken as:

• Interim Resolution Professional (IRP)
• Resolution Professional (RP)
• Liquidator in a liquidation process

The limit is intended to ensure that IPs have the capacity and attention required to manage cases efficiently.

2.2 Restriction on Large-Value Assignments

Within the overall cap, there is a specific limit for high-value cases:

Maximum 3 assignments may involve claims exceeding ₹1,000 crore each.

This provision recognises the additional complexity and resource intensity required for large-value insolvency cases.

2.3 Treatment of IPs Already Exceeding the Limit

For insolvency professionals who, on the date of commencement of this amendment, already hold assignments exceeding the limits under Regulation 7B:

• They shall not accept any new assignment
• Until their number of ongoing assignments falls below the prescribed limit

This ensures a phased compliance mechanism without disrupting ongoing insolvency proceedings.

3. Significance

The introduction of Regulation 7B aims to:

• Enhance efficiency, accountability, and quality of insolvency resolution,
• Prevent overburdening of individual IPs,
• Ensure that large and complex cases receive adequate attention, and
• Strengthen the overall professionalism and governance of the insolvency ecosystem.

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