Insolvency and Bankruptcy Board of India (IBBI)

The Code relies on a regulator to make its processes work: to register and discipline the professionals who run them, to lay down detailed procedures through regulations, and to collect and publish information. That regulator is the Insolvency and Bankruptcy Board of India. Its regulations fill in much of the detail of the Code, from claims to auctions. This note explains how the Board is constituted, what it does, and how the 2026 Amendment reshaped its disciplinary role.

1. Establishment and Composition

• Section 188. The Board is a body corporate with perpetual succession, established by notification on 1 October 2016, with its head office in the National Capital Region.
• Section 189. It consists of a Chairperson; three ex officio members, not below the rank of Joint Secretary, from the Ministries of Finance, Corporate Affairs and Law; one ex officio member nominated by the Reserve Bank of India; and five other members nominated by the Central Government, of whom at least three are whole-time members.
• Appointment and tenure. Members other than ex officio members are appointed on the recommendation of a selection committee and hold office for five years or until the age of sixty-five, whichever is earlier, and are eligible for reappointment.
• Removal, section 190. A member may be removed if adjudged an undischarged bankrupt, physically or mentally incapable, convicted of an offence involving moral turpitude, or found to have abused his position, after an opportunity of being heard in the last case.

Figure 1: Composition of the Board under section 189

2. Powers and Functions, Section 196

Figure 2: Principal functions of the IBBI

• Registration. Register, renew, suspend and cancel the registration of service providers, which after 2026 include insolvency professionals, insolvency professional agencies, information utilities and registered valuers.
• Standards. Specify eligibility requirements, minimum curriculum, standards of professional conduct, and, after 2026, standards of conduct for committees of creditors and their members, including timelines for decisions.
• Supervision. Carry out inspections and investigations of service providers, monitor their performance, and address grievances.
• Regulations. Make regulations on matters such as the CIRP, liquidation, voluntary liquidation, pre-pack and personal insolvency, after public consultation; these regulations are made under section 240 and laid before Parliament under section 241.
• Information. Maintain records of insolvency and bankruptcy cases and publish information, data and research.
• Civil court powers, section 196(3). In its inquiries, the Board has the powers of a civil court for discovery and production of documents, summoning and examining persons, inspection of books and issuing commissions.

3. Discipline after 2026

• Complaints and investigation. Any person aggrieved by a service provider may complain to the Board, which may order an inspection or investigation (sections 217 and 218)
• Show cause, section 219. Where, after inspection, investigation or on the record, the Board forms a prima facie opinion that sufficient cause exists, it issues a show cause notice to the service provider.
• Disciplinary committees, section 220. The Board constitutes disciplinary committees of its Chairperson, whole-time members or officers not below the rank of Executive Director; a committee may impose a penalty, suspend or cancel registration, or direct disgorgement and restitution.
• Penalty. A penalty may extend to three times the loss caused or unlawful gain made, or, where these cannot be quantified, up to two crore rupees, raised from one crore in 2026.
• Appeal. An order of a disciplinary committee is appealable to the NCLAT within 30 days, extendable by 15 (section 220(7) and (8))

4. Finance and Accountability

• Funds, sections 221 and 222. The Board receives grants appropriated by Parliament and credits fees and charges to its fund, from which it meets its expenses.
• Accounts, section 223. The Comptroller and Auditor-General audits its accounts, which are laid before Parliament.
• Directions. The Board acts subject to the general direction of the Central Government in exercising its powers under section 196.

Figure 3: Milestones in the Board's work

5. The Board's Role in Practice

Much of the Code's operation depends on the Board's regulations: the model timeline of the CIRP, the manner of claims, the content of resolution plans, the conduct of auctions in liquidation and the treatment of secured creditors. The Board frequently publishes discussion papers inviting public comment before amending its regulations, as with the draft CIIRP Regulations in 2026, and it publishes quarterly newsletters with statistics on processes and outcomes (Topic 95).

6. Frequently Asked Questions

How many members does the IBBI have?

A Chairperson, four ex officio members (three from the Ministries of Finance, Corporate Affairs and Law, and one RBI nominee), and five other members, of whom at least three are whole-time, under section 189.

Who disciplines an insolvency professional for misconduct?

The IBBI, through a disciplinary committee after a show cause notice, under sections 219 and 220; the professional's agency also monitors its members. An appeal lies to the NCLAT.

Can the IBBI regulate the conduct of the committee of creditors?

Since 2026, provision has been made for standards of conduct for committees of creditors and their members, including timelines for decisions, under Parts II and III.

Are IBBI regulations subject to parliamentary control?

Yes. Regulations made under section 240 are laid before each House of Parliament under section 241, and Parliament may modify or annul them.

7. Related Topics

• Topic 10: Institutional Framework. IBBI, NCLT, NCLAT and IPs.
• Topic 75: Insolvency Professionals, Agencies and Information Utilities. The service providers.
• Topic 95: Statistics and Outcomes. What the Board's data shows.