IBBI Tightens Governance Framework for Insolvency Professional Agencies

The Insolvency and Bankruptcy Board of India (“IBBI”) has notified significant amendments to the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. 

The amendments strengthen governance oversight of Insolvency Professional Agencies (“IPAs”) through introduction of nominee directors, stricter independence criteria for independent directors, enhanced regulatory scrutiny over reappointments, and revised procedures for appointment and renewal of managing directors.

The revised framework reflects the IBBI’s continued movement toward stronger institutional supervision, enhanced governance independence, and greater accountability within the insolvency ecosystem.