Sangeetha Prathap

The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2025, introducing a cap on the number of assignments an individual insolvency professional may hold at any given time. The regulations came into force upon publication in the Official Gazette on November 20, 2025

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The amendment inserts Regulation 7B titled “Number of Assignments” into the principal 2016 regulations. It provides that an insolvency professional, who is not an insolvency professional entity, shall not at any point of time hold more than ten assignments in aggregate across roles such as interim resolution professional and resolution professional in corporate insolvency resolution processes, and as liquidator in liquidation proceedings. Of these, not more than three assignments may relate to cases with admitted claims exceeding ₹1,000 crore each.

The notification clarifies that professionals already holding more than the permitted number of assignments as on the commencement date of the amendment shall not be eligible to accept any additional assignment until the number of their active assignments falls below the prescribed limit.

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Apart from the cap on assignments, the amendment also makes changes to the Code of Conduct for insolvency professionals in the First Schedule. It replaces the requirement of obtaining the approval of the Board with the requirement of obtaining the prior approval of the Adjudicating Authority for the acquisition of assets of the corporate debtor by the insolvency professional or their related parties. Additionally, the clarification to Clause 22 of the Code of Conduct has been omitted.