The Insolvency and Bankruptcy Board of India (IBBI) has notified the Fifth Amendment of 2025 to the Insolvency Resolution Process for Corporate Persons Regulations, 2016, effective from July 04, 2025.

The amendments focus on two core aspects:

1. Enhanced Disclosure Obligations (Regulation 36): Resolution Professional (RP) must now include in the Information Memorandum (IM) not only the status as on the insolvency commencement date, but also all subsequent updates. This includes identified avoidance transactions and filings relating to fraudulent or wrongful trading, as referred under Regulation 35A(3A). The IM must be periodically shared with the CoC.
2. Restriction on Assignment of Undisclosed Transactions (New Regulation 38(2A)): Resolution plans cannot assign avoidance transactions or fraudulent/wrongful trading claims unless:

• They were disclosed in the Information Memorandum, and
• They were intimated to all prospective resolution applicants under Regulation 35A(3A) before the last date for submission of resolution plans.

This restriction does not apply to resolution plans already submitted to the Adjudicating Authority before the commencement of these amended regulations.