The Insolvency and Bankruptcy Board of India (IBBI) has
officially released the Insolvency Professionals (Second Amendment)
Regulations, 2025 via Notification No. IBBI/2025-26/GN/REG132 on 20
November 2025 where certain amendments were made. These amendments,
enacted under Sections 196, 207, and 208 in conjunction with
Section 240 of the Insolvency and Bankruptcy Code, 2016 (the Code),
are effective immediately and represent the second major regulatory
reform for insolvency professionals (IPs) in 2025.
The amendments signify a transition from self-regulated
responsibilities and discretionary oversight to a more organized,
judicially monitored, and performance-oriented insolvency practice.
The aim is to improve the quality of disclosures, bolster
independence, ensure equitable distribution of assignments, and
strengthen accountability throughout the insolvency framework.
