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

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  • Last Updated on 10 November, 2025

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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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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied