Insolvency and Bankruptcy Board of India
The Insolvency and Bankruptcy Board of India (IBBI) is the regulator and supervisor established under the Insolvency and Bankruptcy Code, 2016 to oversee the resolution of insolvency and bankruptcy proceedings for individuals, partnership firms, limited liability partnerships and corporate persons.
The IBBI was established in October 2016 as a statutory body under the IBC. Its mandate covers three broad areas: regulating Insolvency Professionals (IPs), registering and overseeing Insolvency Professional Agencies (IPAs) and Insolvency Professional Entities, and establishing and regulating Information Utilities that store financial data on debtors. The IBBI also functions as the quasi-judicial authority that handles disciplinary proceedings against registered insolvency professionals.
Insolvency Professionals are the central operational actors in the IBC framework. An IP serves as the Interim Resolution Professional or Resolution Professional during the Corporate Insolvency Resolution Process (CIRP) for a corporate debtor, or as the Liquidator in liquidation proceedings. To practice, an IP must be registered with the IBBI, pass a national insolvency examination, maintain continuing education requirements and adhere to a code of conduct. The IBBI registers IPs directly and through three IPAs: the Indian Institute of Insolvency Professionals of ICAI, the Indian Institute of Insolvency Professionals of ICSI, and the Insolvency Professional Agency of IBA.
The IBBI has issued numerous regulations covering every aspect of the insolvency process: the CIRP regulations, liquidation process regulations, pre-packaged insolvency process regulations, voluntary liquidation regulations and the IBBI (Insolvency Professionals) Regulations. These are periodically amended to address procedural bottlenecks, reduce timelines and improve recovery outcomes.
For investors in listed Indian companies, the IBBI and IBC have a direct connection. When a listed company enters CIRP, trading in its shares may continue on the exchanges subject to surveillance measures, while the IP takes over management. Approved resolution plans under the IBC often involve significant dilution of existing equity, conversion of debt to equity, or delisting. Monitoring NCLT filings and IBBI disclosures is therefore essential for holders of debt or equity in financially stressed companies.
The IBBI's annual reports and research publications provide data on resolution timelines, realisation rates and sector-wise insolvency trends, which are valuable inputs for credit analysis and risk assessment across the financial sector.