IBBI Strengthens Asset Disclosure Rules for Personal Guarantors

Notification F. No. IBBI/2026-27/GN/REG149., Dated 01.06.2026

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency Resolution Process for Personal Guarantors to Corporate Debtors Regulations, 2019 to strengthen disclosure requirements, facilitate implementation of asset transfer provisions under the Insolvency and Bankruptcy Code, 2016, and streamline procedural compliance.

The amendments also introduce a new mechanism for notifying prescribed forms through circulars instead of incorporating them directly in the Regulations.

1. Comprehensive Asset Disclosure by Personal Guarantors

The amended regulations require personal guarantors to make more comprehensive disclosures regarding their assets during the insolvency resolution process.

The enhanced disclosure framework is intended to provide creditors, resolution professionals and adjudicating authorities with a clearer picture of the guarantor’s financial position and asset base.

2. Facilitation of Asset Transfer Under Section 28A of the IBC

The amendments introduce provisions to facilitate the implementation of Section 28A of the Insolvency and Bankruptcy Code, 2016, which relates to the transfer of assets in specified circumstances under the personal guarantor insolvency framework.

The revised provisions seek to ensure that asset transfer processes are undertaken in a structured and transparent manner in accordance with statutory requirements.

3. Approval and Disclosure Requirements Prescribed

The regulations now prescribe specific requirements relating to:

• Approval of transactions and actions undertaken under the framework;
• Disclosure of relevant information to stakeholders; and
• Compliance with procedural safeguards connected with asset transfers and insolvency proceedings.

These measures are intended to enhance transparency and accountability throughout the resolution process.

4. Forms to Be Notified Through Circulars

The amendments also replace prescribed forms contained in the Regulations with a framework under which forms will be:

• Notified separately through IBBI circulars; and
• Updated from time to time as required.

This change provides greater administrative flexibility and allows procedural forms to be modified without requiring formal amendments to the Regulations.

5. Objective of the Amendments

The amendments aim to strengthen the insolvency resolution framework for personal guarantors to corporate debtors by improving asset transparency, facilitating implementation of asset transfer provisions under the Code and enhancing disclosure standards.

The move is also intended to provide greater regulatory flexibility by enabling prescribed forms to be issued and updated through circulars, thereby ensuring quicker adaptation to evolving procedural requirements.

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