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Understanding Key Amendments August 2026

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The Securities and Exchange Board of India


Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2026


The Securities and Exchange Board of India (“SEBI”) has notified the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2026 vide Notification No. SEBI/LAD-NRO/GN/2026/312, published in the Official Gazette on July 10, 2026. The amendment has been issued in exercise of the powers conferred under Sections 11, 11A(2) and 30 of the Securities and Exchange Board of India Act, 1992 read with Section 31 of the Securities Contracts (Regulation) Act, 1956, and came into force on the date of its publication in the Official Gazette. The amendments modify the framework governing the transfer and transmission of securities under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.


The notification introduces amendments to Regulations 40(7) and 61(4) of the LODR Regulations and omits Clause C of Schedule VII. These changes replace the earlier references to procedural requirements contained within the Regulations with a framework under which such procedures shall be specified by SEBI from time to time.


Key Highlights


1. Amendment to Regulation 40(7)

Regulation 40(7) has been substituted to provide that every listed entity shall comply with all procedural requirements relating to the transfer and transmission of securities as specified by the Board from time to time. The earlier provision referring to procedures prescribed under the Regulations has accordingly been replaced.

2. Amendment to Regulation 61(4)

Regulation 61(4) has been amended by substituting the words "specified in Schedule VII" with the words "as specified by the Board from time to time." Consequently, the applicable procedures for listed non-convertible securities and other specified securities will now be governed by directions issued by SEBI from time to time.

3. Omission of Clause C of Schedule VII

The notification omits Clause C of Schedule VII of the LODR Regulations. As a result, the procedural provisions relating to the transfer and transmission of securities are no longer contained in Schedule VII and will instead be specified separately by SEBI through circulars or other directions issued from time to time.

4. Commencement

The Second Amendment Regulations came into force on July 10, 2026, being the date of their publication in the Official Gazette.



Securities and Exchange Board of India (Custodian) (Amendment) Regulations, 2026


The Securities and Exchange Board of India (“SEBI”) has notified the Securities and Exchange Board of India (Custodian) (Amendment) Regulations, 2026 vide Notification No. SEBI/LAD-NRO/GN/2026/308, dated  July 3, 2026. The amendment has been issued in exercise of the powers conferred under Section 30 of the Securities and Exchange Board of India Act, 1992, to further amend the SEBI (Custodian) Regulations, 1996. The notification provides that the amendments shall come into force with effect from  October 1, 2026.


The amendment revises the fee payment structure applicable to registered custodians. Specifically, it substitutes the annual fee mechanism with a monthly fee payment requirement in 2 (two) provisions of the principal Regulations, thereby changing the frequency and structure of prescribed fee obligations. No other substantive provisions of the SEBI (Custodian) Regulations, 1996 have been amended through this notification.


Key Highlights


1. Amendment to Regulation 9(d)

The amendment modifies Regulation 9(d) to change the fee payment mechanism for custodians from an annual basis to a monthly basis. Custodians are now required to pay fees of INR 85,000/- (Indian Rupees Eighty Five Thousand) per month or 0.0000416% (Approximately 0.416 basis points per annum) of assets under custody (whichever is higher), instead of the earlier annual fee of INR 10,00,000/- (Indian Rupees Ten Lakhs) or 0.0005% (5 basis points) of assets under custody. Payments must be made within 15 (fifteen) days from the end of each month. .

2. Amendment to Regulation 26(i)

A similar amendment has been made to Regulation 26(i), whereby the fee payment structure has been changed from annual to monthly. Consequently, custodians are subject to the same monthly fee payment obligations as specified above. .

3. Increase in Reporting Frequency

The amendment enhances the fee collection frequency by requiring custodians to remit fees monthly rather than annually, aligning the fee payment cycle with operational reporting cycles. Apart from these changes, the notification does not introduce any additional amendments to the SEBI (Custodian) Regulations, 1996.

4. Effective Date

The SEBI (Custodian) (Amendment) Regulations, 2026 shall come into force with effect from  October 1, 2026, as specified in the notification.


Source

SEBI Notification No. SEBI/LAD-NRO/GN/2026/308, dated  July 3, 2026


Review of Norms for Utilization of Interest/Income from Investor Protection Fund (“IPF”) of the Depositories


The Securities and Exchange Board of India (“SEBI”), vide Circular No. HO/47/14/13(4)2026-MRD-POD3/I/15577/2026 dated  July 7, 2026, has revised the norms governing the utilization of interest or income earned from investments made out of the Investor Protection Fund (“IPF”) maintained by depositories. The circular amends the relevant provisions of the SEBI Master Circular for Depositories dated December 3, 2024 and has been issued pursuant to representations received from depositories, recommendations of the Secondary Market Advisory Committee (“SMAC”), public consultation and internal deliberations. The revised framework shall come into effect from  September 1, 2026.


Prior to the amendment, 100% (One Hundred Percent) of the interest or income earned from investments made out of the IPF was required to be treated as part of the IPF corpus. The revised framework permits a limited portion of such income to be utilized for specified administrative and statutory expenses while ensuring that the majority of the income continues to strengthen the corpus of the Investor Protection Fund.


Key Highlights


1. Revision in Contribution to IPF Corpus

The circular provides that at least 95% (Ninety Five Percent) of the interest or income received every year from investments made out of the Investor Protection Fund shall be contributed back to the IPF corpus. This replaces the earlier requirement under which the entire interest or income earned from such investments was required to be added to the corpus.

2. Permitted Utilization of up to 5% (Five Percent) of Annual Interest or Income

Depositories may utilize up to 5% (Five Percent) of the annual interest or income earned from investments of the IPF during the financial year for specified expenses relating to the functioning of the IPF Trust. These include expenses relating to dedicated employees of the IPF Trust, administrative expenses, applicable taxes, audit fees and the Charity Commissioner's fee.

3. Treatment of Excess or Unutilized Amount

Where the administrative or statutory expenses exceed the prescribed limit of 5% (Five Percent), the excess amount shall be borne by the concerned depository. Further, if the permissible amount is not utilised during the relevant financial year, the unutilised balance is required to be ploughed back into the Investor Protection Fund corpus.

4. Amendment to the Master Circular

The circular modifies Clauses 4.46.1.1(B)(i)(c) and 4.46.1.1(C)(i)(2) of Section 4 of the SEBI Master Circular for Depositories dated  December 3, 2024, thereby bringing the revised utilization framework into effect for all recognised depositories.

5. Effective Date

The revised norms shall become effective from  September 1, 2026, providing depositories sufficient time to align their internal processes with the amended framework.


Source-

SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2026/116 dated  July 7, 2026


SEBI Intraday Borrowing Facility for Mutual Funds


The Securities and Exchange Board of India (SEBI), vide Circular No. HO/IMD/IMD-PoD-2/P/CIR/2026/92 dated July 10, 2026, has operationalized the framework governing the Intraday Borrowing Facility Availed by Mutual Funds. The circular has been issued pursuant to the amendments made to the SEBI (Mutual Funds) Regulations, 1996 and modifies the provisions contained in the SEBI Master Circular for Mutual Funds dated 27 June 2024. The revised framework shall come into effect from  September 1, 2026. It aims to facilitate the management of temporary liquidity mismatches arising during the course of settlement while ensuring that adequate safeguards are maintained for investor protection.


The circular prescribes a comprehensive framework governing the circumstances in which mutual fund schemes may avail intraday borrowings, the permissible limits, eligible purposes, repayment requirements and governance obligations of Asset Management Companies (AMCs) and Trustees. It also amends the relevant provisions of the Master Circular for Mutual Funds to incorporate the revised borrowing framework.


Key Highlights


1. Introduction of Intraday Borrowing Framework

Mutual fund schemes are permitted to avail intraday borrowings to address temporary liquidity mismatches arising due to differences in settlement timings of market transactions. The facility is intended solely for intraday liquidity management and is distinct from the existing framework governing borrowings by mutual fund schemes.

2. Permissible Purposes of Borrowing

The circular specifies that intraday borrowings may be availed only for designated purposes, including payment obligations towards redemption proceeds, IDCW payouts, settlement of securities transactions, mark-to-market obligations, foreign exchange settlements and repayment of existing borrowings. Borrowings for purposes other than those expressly permitted under the circular are not allowed.

3. Borrowing Limits and Repayment

The amount of intraday borrowing shall be linked to specified guaranteed receivables of the scheme, including subscription proceeds, receivables from clearing corporations and receipts from the Reserve Bank of India. All intraday borrowings must be repaid on the same business day. Any borrowing remaining outstanding beyond the business day shall be treated as an overnight borrowing and shall be governed by the applicable provisions of the SEBI (Mutual Funds) Regulations and the Master Circular.

4. Governance and Record-Keeping Requirements

Asset Management Companies are required to formulate a Board-approved policy governing intraday borrowings. AMCs are also required to maintain scheme-wise records relating to liquidity mismatches, borrowing amounts, utilisation, repayment and compliance with the prescribed conditions. Trustees are responsible for overseeing compliance with the revised framework.

5. Effective Date

The revised framework shall come into effect from  September 1, 2026, from which date the relevant provisions of the SEBI Master Circular for Mutual Funds shall stand modified to give effect to the revised borrowing mechanism.


Source


The Reserve Bank of India ("RBI")


RBI Consolidates and Rationalizes Guidelines on Special Rupee Vostro Accounts (SRVAs)


On July 17, 2026, the Reserve Bank of India ("RBI"), through A.P. (DIR Series) Circular No. 19 (RBI/2026-27/203), consolidated and rationalized the extant instructions governing Special Rupee Vostro Accounts ("SRVAs") used for settlement of cross-border trade transactions in Indian Rupees ("INR"). Issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 ("FEMA"), the circular supersedes five earlier circulars issued between July, 2022 and October, 2025 on International Trade Settlement in INR and consolidates the changes flowing from each of them into a single, updated framework.


The circular reiterates the framework for opening of SRVAs by Authorised Dealer ("AD") banks, expands the scope of permissible transactions that may be settled through such accounts, clarifies the sources of funding and permissible investment of SRVA balances, and prescribes the applicable documentation and reporting requirements. The revised instructions came into force with immediate effect.


Key Highlights


1. Consolidation and Supersession of Earlier Circulars

RBI has consolidated and rationalised the instructions contained in A.P. (DIR Series) Circular No. 10 dated July 11, 2022, Circular No. 08 dated November 17, 2023, Circular No. 11 dated June 11, 2024, Circular No. 08 dated August 5, 2025, and Circular No. 14 dated October 3, 2025, all of which stand superseded by the present circular. An annexure to the circular maps each provision of the earlier circulars to the corresponding paragraph of the consolidated framework.

2. Framework for Opening of SRVAs

AD banks in India may continue to open SRVAs for a branch outside India or a bank resident outside India, in terms of Regulation 7(1) of the Foreign Exchange Management (Deposit) Regulations, 2016, without the need to separately refer such openings to RBI for approval.

3. Expansion of Permissible Transactions through SRVAs

In addition to invoicing, payment and settlement of exports and imports in INR, the circular clarifies that all permissible current and capital account transactions under FEMA may also be settled through the SRVA. AD banks maintaining an SRVA are further permitted to open an additional current account exclusively for settlement of export or import transactions by the relevant exporter or importer.

4. Funding and Investment of SRVA Balances

SRVAs may be funded through inward remittances or transfers from other repatriable INR accounts, and proceeds accruing from permissible current and capital account transactions under FEMA may also be credited to the account. Investment of surplus balances in eligible debt instruments shall continue to be governed by the Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025, as amended from time to time.

5. Documentation, Reporting and Immediate Applicability

Documentation and reporting of cross-border transactions routed through an SRVA shall continue to be undertaken in accordance with extant FEMA guidelines. Details of SRVAs held by overseas correspondent banks with AD banks in India are to be periodically updated in the 'SRVA Directory' published by FEDAI. The revised instructions came into force with immediate effect, and AD banks have been advised to bring the contents of the circular to the notice of their constituents and customers.


Source: RBI A.P. (DIR Series) Circular No. 19 (RBI/2026-27/203) dated July 17, 2026.


RBI Introduces Prudential Framework for Specified Non-Financial Assets Acquired by Commercial Banks


On July 16, 2026, the Reserve Bank of India ("RBI"), through DOR.STR.REC.168/21-04-048/2026-27 (RBI/2026-27/187), issued the Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Third Amendment Directions, 2026, introducing a dedicated prudential framework governing the acquisition, valuation, disposal, and disclosure of immovable assets acquired by banks in satisfaction of borrower claims, including non-banking assets ("NBAs") acquired under the Banking Regulation Act, 1949. Issued in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949, the Amendment Directions insert a new Chapter VII-A into the Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Directions, 2025.


The Directions define such assets as "Specified Non-Financial Assets" ("SNFAs"), require banks to adopt a Board-approved policy governing their acquisition and disposal, prescribe the valuation methodology applicable at acquisition and on subsequent reporting dates, mandate disposal through public auction within a prescribed period, and introduce dedicated disclosure and reporting requirements. The framework shall come into force with effect from October 1, 2026.


Key Highlights


1. Definition and Scope of Specified Non-Financial Assets

An SNFA is defined as an immovable asset acquired by a bank in full or part satisfaction of its claims on a borrower, including NBAs acquired under the relevant provisions of the Banking Regulation Act, 1949. The provisions of the new Chapter VII-A cover all SNFAs, including those acquired through bilateral acquisitions or through proceedings under the SARFAESI Act, 2002. SNFAs may only be acquired where the bank's exposure to the relevant borrower is classified as non-performing, and only against full or partial extinguishment of the bank's exposure on a non-recourse basis.

2. Board-Approved Policy Requirements

Banks are required to incorporate suitable provisions in their policy governing the acquisition and disposal of SNFAs, including the limit on SNFAs as a share of total assets, eligibility criteria, delegation matrix, recovery efforts to be explored prior to acquisition, and the maximum period for disposal, which shall not exceed seven years.

3. Valuation Methodology

Upon acquisition, an SNFA shall be recorded at the lower of the net book value ("NBV") of the extinguished exposure or the distress sale value ("DSV") determined by at least two independent external valuers. Where extinguishment is partial, the NBV shall be calculated on a proportionate basis, and the residual exposure shall attract the prudential treatment applicable to restructuring. At each subsequent reporting date, the SNFA shall be carried at the revised NBV, net of applicable notional provisions.

4. Disposal Requirements and Restrictions

Banks are required to dispose of an SNFA within the maximum period specified in their policy, subject to an overall cap of seven years, and are required to make all efforts to dispose of the asset through public auction in accordance with the principles enshrined in the SARFAESI Act, 2002. An SNFA shall not be sold back to the borrower or its related parties, as defined under the Insolvency and Bankruptcy Code, 2016, and this restriction continues to apply even after the asset ceases to be classified as an SNFA.

5. Disclosure, Reporting and Transition

SNFAs shall be excluded from the total stock of residual exposure, Gross NPA, Net NPA, stressed exposures, and the Provisioning Coverage Ratio, and shall instead be separately disclosed under the relevant accounting head as "non-banking assets acquired in satisfaction of claims", with reporting to be made through the CIMS portal in the prescribed format. The framework applies from October 1, 2026, and banks are required to bring any "legacy" SNFAs outstanding as on September 30, 2026 into compliance with the Directions by September 30, 2027.


Source: RBI Notification No. DOR.STR.REC.168/21-04-048/2026-27 (RBI/2026-27/187) dated July 16, 2026.


RBI Streamlines Board Governance Framework for Commercial Banks


On July 14, 2026, the Reserve Bank of India ("RBI"), through DOR.HGG.GOV.150/29.67.001/2026-27 (RBI/2026-27/177), issued the Reserve Bank of India (Commercial Banks – Governance) Amendment Directions, 2026, amending the Reserve Bank of India (Commercial Banks - Governance) Directions, 2025 to rationalise and consolidate the matters required to be placed before bank Boards. Issued in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, the Amendment Directions are intended to enable bank Boards to utilise their time more effectively and to facilitate a more focused engagement on strategy and risk governance.


The revised framework replaces the earlier, dispersed provisions on Board oversight with a consolidated classification of matters requiring Board approval, review, information, or delegation to Board Committees, supported by dedicated appendices. The Amendment Directions shall come into force from October 1, 2026.


Key Highlights


1. Consolidation of Board Oversight Provisions

The earlier paragraphs 14 to 19 of Chapter II, dealing with Board oversight, have been deleted, and a new paragraph 11A has been inserted requiring the Board to exercise oversight over the bank's risk management system, policy and strategy, exposures to related entities, and conformity with corporate governance standards, including the composition, role and periodicity of Board Committee meetings.

2. Structured Classification of Matters for the Board

A new section on "Matters to be placed before the Board" has been introduced, which classifies policies requiring Board approval (set out in Appendix I), matters other than policies requiring Board approval, review or information (set out in Appendix II A), and matters other than policies that may be delegated at the Board's discretion (set out in Appendix II B). Review of Board-approved policies may itself be delegated to Board Committees, with the Board approving only material amendments.

3. Key Principles Governing Delegation

The Directions clarify that the Board retains ultimate responsibility for the bank's business strategy, financial soundness, key personnel decisions, internal governance structure, and risk management and compliance obligations, notwithstanding permissible delegation to Board or Management Committees. The Chairperson bears primary responsibility for setting the meeting agenda, and the Board is required to periodically review the matters placed before it as well as those delegated to its Committees, including the timeliness and adequacy of information provided.

4. Applicability to Private Sector Banks

The responsibilities of the Board of a Public Sector Bank under the revised paragraphs 8 to 11A, and the provisions on Board structure and practices under paragraphs 12 to 19B, shall apply mutatis mutandis to the Boards of Private Sector Banks.

5. Effective Date

The Amendment Directions, along with the consequential changes to the appendices, shall come into force from October 1, 2026.


Source: RBI Notification No. DOR.HGG.GOV.150/29.67.001/2026-27 (RBI/2026-27/177) dated July 14, 2026.


RBI Clarifies Project Financing Norms for Multi-Unit Infrastructure and Integrated Power Projects Financed by Commercial Banks


On July 15, 2026, the Reserve Bank of India ("RBI"), through DOR.STR.REC.154/21-04-048/2026-27 (RBI/2026-27/181), issued the Reserve Bank of India (Commercial Banks – Credit Facilities) Fifth Amendment Directions, 2026, amending the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025 to provide additional clarity on the financing of multi-unit infrastructure projects and integrated power generation projects. Issued in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949, the Amendment Directions came into force with immediate effect.


Key Highlights


1. Financing of Independently Viable Project Units

Where a project can be operationalised as multiple independent viable units, a bank may, at its discretion, finance such units as separate projects, provided each unit achieves its own financial closure and is appraised ex-ante for standalone viability.

2. Right of Way Requirements for Integrated Power Projects

For electricity generation projects whose scope includes both power generation and transmission (evacuation infrastructure), the Amendment Directions clarify how the applicable right of way requirement for the transmission component is to be determined under the relevant provisions of the Directions.

3. Immediate Applicability

The amendments took effect immediately upon issuance and provide greater clarity for banks financing multi-unit infrastructure projects and integrated power generation projects going forward.


Source: RBI Notification No. DOR.STR.REC.154/21-04-048/2026-27 (RBI/2026-27/181) dated July 15, 2026.



The Ministry of Corporate Affairs ("MCA")


MCA Extends the Companies Compliance Facilitation Scheme, 2026 to August 31, 2026


On July 8, 2026, the Ministry of Corporate Affairs ("MCA"), through General Circular No. 03/2026 (F. No. Policy-02/2/2020-CL-V-MCA), extended the validity of the Companies Compliance Facilitation Scheme, 2026 ("CCFS-2026") from its earlier closing date of July 15, 2026 to August 31, 2026. CCFS-2026 was originally introduced by MCA vide General Circular No. 01/2026 dated February 24, 2026, in exercise of powers conferred under Section 460 read with Section 403 of the Companies Act, 2013, as a one-time scheme enabling companies to regularise pending annual filings, obtain dormant status, or apply for strike-off at significantly concessional fees. The extension has been granted in view of the capacity enhancement and restoration activities being undertaken at the MCA-21 data centre following a fire incident on June 5, 2026, which had earlier also necessitated relief in respect of Form DPT-3 filings and company/LLP name reservations.


The Scheme, which opened on April 15, 2026, condones delay in the filing of annual returns and financial statements and enables inactive or defunct companies to seek dormancy or closure at reduced cost. All fee-relief structures and immunity provisions under the original Scheme remain unchanged; only the closing date has been revised.


Key Highlights


1. Extension of Scheme Validity MCA has extended the validity of CCFS-2026 from July 15, 2026 to August 31, 2026. The extension was issued with the approval of the competent authority and addressed to the Director General of Corporate Affairs, all Regional Directors, all Registrars of Companies, and all stakeholders.


2. Concessional Fee Structure Continues to Apply Under the Scheme, companies with pending annual filings — including Forms MGT-7, MGT-7A, the AOC-4 series, ADT-1, FC-3, FC-4, and corresponding Companies Act, 1956 forms — may complete such filings by paying normal fees plus only 10% (Ten Percent) of the applicable additional fees, representing a 90% (Ninety Percent) reduction on the additional fee otherwise chargeable at ₹100 per day without any upper limit since July 1, 2018. Inactive companies may instead apply for Dormant Company status under Section 455 by filing e-form MSC-1 at 50% (Fifty Percent) of normal filing fees, or apply for strike-off under e-form STK-2 at 25% (Twenty Five Percent) of applicable filing fees.


3. Immunity from Penalty Retained Filings made under the Scheme continue to attract immunity under the proviso to Section 454(3) of the Companies Act, 2013 in respect of defaults under Section 92 (Annual Return) and Section 137 (Financial Statements), where the filing is made prior to issuance of an adjudication notice or within 30 days of such notice. Separate immunity against prospective penal action continues to be available for ADT-1, FC-3, FC-4 and old Companies Act, 1956 forms, provided no prosecution or show-cause notice has been issued before the filing is made. No separate immunity application form is required; filing the overdue form itself suffices.


4. Reason for Extension The extension has been granted solely on account of the capacity enhancement and restoration activities being carried out at the MCA data centre consequent to the fire incident of June 5, 2026, which disrupted MCA-21 services during a peak annual-filing period.


5. Effect of Non-Compliance after Closure of the Scheme MCA has reiterated that, at the conclusion of the Scheme, Registrars of Companies shall initiate necessary action, including adjudication proceedings under Section 454, suo motu strike-off under Section 248, and — for companies with three consecutive years of non-filing — director disqualification under Section 164(2)(a), against companies that have not availed of the Scheme.


Source: MCA General Circular No. 03/2026 dated July 8, 2026 (https://www.mca.gov.in/bin/dms/getdocument?mds=xwGPm7oa6c44FD0N2foavA%3D%3D&type=open)



The Insolvency and Bankruptcy Board of India ("IBBI")


IBBI Proposes Amendments to CIRP, Liquidation and Personal Guarantor Regulations to Strengthen the Valuation Framework and Align with the IBC (Amendment) Act, 2026


On July 2, 2026, the Insolvency and Bankruptcy Board of India ("IBBI") issued a Discussion Paper titled "Strengthening the Regulatory Framework – Amendments to CIRP Regulations, Liquidation Regulations and PG to CD Regulations," proposing amendments to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations"), the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, the IBBI (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 (together, "PG to CD Regulations"), and the IBBI (Liquidation Process) Regulations, 2016 ("Liquidation Regulations"). Issued pursuant to clauses (aa) and (t) of Section 196(1) read with Section 240 of the Insolvency and Bankruptcy Code, 2016 ("Code"), the Discussion Paper responds to stakeholder representations identifying procedural gaps concerning the appointment of registered valuers, the consequences of the removal of interim moratorium protection for personal guarantors under the Insolvency and Bankruptcy Code (Amendment) Act, 2026 ("Amendment Act, 2026"), the continuity of a resolution professional's duties pending disposal of withdrawal applications under Section 12A, and the administrative burden of seeking Adjudicating Authority approval for modifying the list of stakeholders in liquidation.


The proposals seek to plug identified gaps, reduce procedural uncertainty, and align the regulatory framework with the Amendment Act, 2026. Public comments on the draft regulations were invited until July 22, 2026.


Key Highlights


1. Committee Approval Required for Appointment of Registered Valuers; Sealed-Cover Valuation Reports 

IBBI has proposed that registered valuers under Regulation 27(1) of the CIRP Regulations be appointed only with the prior approval of the committee of creditors ("CoC"), addressing the present position where valuers are appointed by the resolution professional ("RP") without committee involvement despite valuation being central to the CoC's evaluation of resolution plans. It is further proposed that each valuer submit its valuation report — including fair value and liquidation value, after taking the Information Memorandum into account — in a sealed cover or through a secure electronic mode with restricted access, on or before the last date for receipt of resolution plans, with the sealed cover to be opened before the committee only on that date after members furnish a confidentiality undertaking.


2. Removal of Fair Value Disclosure from the Information Memorandum Corresponding amendments are proposed to Regulations 35 and 36 of the CIRP Regulations to remove the existing requirement under Regulation 36(2)(ka) to disclose fair value in the Information Memorandum, since this was found to undermine the confidentiality that later stages of the process are intended to preserve. Fair value would instead be disclosed only at the plan evaluation stage.


3. Intimation Requirement on Cessation of Interim Moratorium for Personal Guarantors Following the insertion of sub-section (4) to Sections 96 and 124 of the Code by the Amendment Act, 2026 (effective May 26, 2026), which withdrew the automatic interim moratorium available to personal guarantors to corporate debtors, IBBI has proposed new regulations under the PG to CD Regulations requiring the debtor or creditor, as applicable, to intimate the other party in writing, within 30 days of commencement of the amending regulations, that the interim moratorium no longer applies to applications under Sections 94, 95, 122 or 123 pending admission as on May 26, 2026. An explanation is also proposed clarifying that creditors may continue or initiate recovery proceedings against the personal guarantor in respect of such pending applications.


4. Clarification on the RP's Continuation in Office Pending Disposal of Section 12A Applications IBBI has proposed inserting a clarification in Regulation 30A of the CIRP Regulations that the resolution professional shall continue to discharge his responsibilities under the corporate insolvency resolution process until an application for withdrawal under Section 12A, approved by the committee, is decided by the Adjudicating Authority, removing existing ambiguity on the point.


5. Removal of Adjudicating Authority Approval for Modifying the List of Stakeholders With the constitution of a committee of creditors in the liquidation process under the Amendment Act, 2026, IBBI has proposed omitting sub-regulations (3) and (4) of Regulation 31 of the Liquidation Regulations, which presently require a liquidator to approach the Adjudicating Authority merely to modify an entry in the list of stakeholders — a requirement considered redundant now that a creditors' committee is in place.


Source: IBBI Discussion Paper dated July 2, 2026, "Strengthening the Regulatory Framework – Amendments to CIRP Regulations, Liquidation Regulations and PG to CD Regulations" (https://ibbi.gov.in/).



IBBI Extends Timeline for Filing Forms to Monitor Personal Guarantor Insolvency Resolution Processes


On July 9, 2026, IBBI, through Circular No. IBBI/II/104/2026, extended the timeline for filing Forms PGIRP-1 to PGIRP-6 — prescribed under Regulation 23 of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 to monitor the insolvency resolution process for personal guarantors to corporate debtors — from June 30, 2026 to September 30, 2026.


Key Highlights


1. Extension of the Filing Timeline Resolution professionals handling personal guarantor assignments have been granted additional time, up to September 30, 2026, to complete filing of the electronic PGIRP forms capturing details of the insolvency resolution process, which had earlier been required to be filed by June 30, 2026.


2. Continued Emphasis on Accurate and Complete Filings IBBI has directed insolvency professionals to ensure that all mandatory fields across the PGIRP forms are completed accurately and that comprehensive details and supporting documents are furnished, noting that these forms are integral to systematic and transparent record-keeping and reporting under the personal guarantor insolvency resolution process.


3. Continued Mode of Filing Consistent with the existing framework introduced vide IBBI Circular dated March 6, 2026, forms must continue to be filed electronically on the IBBI website using credentials issued to the resolution professional, authenticated by digital signature or e-signing, with the earlier practice of furnishing updates by email remaining discontinued.



Disclaimer:-

The content provided in this update is for educational and informational purposes only and should not be construed as legal advice or the opinion of Tempus Law Associates. Tempus Law Associates disclaims any liability in connection with the use of this information without seeking appropriate legal counsel.

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