IBBI Proposes Standard Templates for Beneficial Ownership and Section 32A Affidavit

Discussion Paper; Dated: 06.11.2025

1. Purpose of the Discussion Paper

The Insolvency and Bankruptcy Board of India (IBBI) has released a discussion paper proposing standardised formats for:

• Declaration of beneficial ownership, and
• Affidavit under Section 32A of the Insolvency and Bankruptcy Code, 2016 (IBC).

These templates are intended to streamline disclosures made by prospective resolution applicants during the Corporate Insolvency Resolution Process (CIRP).

2. Need for Standardisation

Current disclosure formats vary across cases, leading to inconsistencies and potential gaps in verifying the:

• Ultimate ownership of applicants,
• Source of funds, and
• Eligibility under Section 32A, which grants immunity to corporate debtors and their property after resolution, subject to certain conditions.

Standard templates will bring greater transparency, accountability, and uniformity to the process.

3. Key Proposals

• Resolution applicants must disclose true and ultimate beneficial ownership in a uniform format.
• A mandatory affidavit confirming eligibility under Section 32A.
• Facilitating insolvency professionals and committees of creditors in assessing applicant credibility and compliance.

4. Stakeholder Consultation

IBBI has sought public comments on the proposal, inviting all stakeholders—including practitioners, companies, lenders, and investors—to share inputs.

Deadline for submitting comments – 16 November 2025

5. Impact

If implemented, the move will:

• Improve due diligence,
• Reduce ambiguity in disclosures, and
• Enhance trust in the resolution process under the IBC.

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