IBBI revamps liquidation forms to cut compliance burden on IPs

New Delhi: The Insolvency Bankruptcy Board of India has launched a set of revised electronic forms for the liquidation process to reduce the compliance burden on insolvency professionals and improve the quality of regulatory filings.

The move came after the Insolvency Bankruptcy Board of India (IBBI) had notified amendments on January 2 to the IBBI (Liquidation Process) Regulations, 2016, which mandate that insolvency professionals file the forms, along with enclosures, on the regulator's electronic platform within prescribed timelines.

In a circular issued on Monday, IBBI said the existing liquidation forms were comprehensively revised to eliminate duplication, rationalising data requirements and leveraging technology for auto-population of information already available on the portal.


The regulator added that these revisions are expected to significantly reduce the time and effort required for compliance while continuing to ensure that the Board receives all essential information in a timely manner.

Under the revised framework, four forms -- LIQ-1 to LIQ-4 -- will cover the entire lifecycle of the liquidation process, from commencement and public announcement to dissolution or closure.

These include periodic progress reporting, details of asset realisation and distribution, unclaimed proceeds, stakeholders' consultation committee meetings and receipts and payments, IBBI said.

The Board said that all revised forms, except LIQ-2, will be made available on the IBBI website from January 1, 2026. Since LIQ-2 is required to be submitted on or after February 1, 2026, it will be made available accordingly. The existing forms will stand discontinued with effect from these dates.

To facilitate a smooth transition for Insolvency Professionals, IBBI clarified that no penalty will be levied for delayed filing of forms, if any, during the initial quarter, from January to March 2026.

The regulator has also introduced a form-modification utility on its electronic platform, allowing IPs to correct errors and omissions in already filed forms through an OTP-based authentication process.

All filings will be required to be made electronically using a unique username and password provided by IBBI and authenticated through digital signature or e-signing.

IBBI also clarified that failure to file forms or submission of inaccurate and incomplete information may attract regulatory action under the provisions of the Code and the regulations.