IBBI Introduces Four New Online Forms To Streamline Liquidation Reporting
Pranav B Prem
The Insolvency and Bankruptcy Board of India (IBBI) has introduced a simplified and technology-driven framework for reporting liquidation-related information by insolvency professionals. Through a circular issued on January 5, 2026, the Board has notified four revised online forms to track a corporate debtor’s liquidation process from commencement to closure. The revised framework will apply with effect from January 1, 2026, and replaces the existing liquidation reporting system. The circular follows amendments notified on January 2, 2026 to the IBBI (Liquidation Process) Regulations, 2016, which mandate insolvency professionals to file liquidation forms, along with relevant records and enclosures, exclusively through the Board’s electronic platform and within the timelines prescribed for each form. All filings are required to be digitally signed or e-signed.
IBBI stated that the revised forms have been designed to reduce compliance burden by eliminating duplication of information, rationalising data requirements, and leveraging auto-population of data already available on the portal. Instead of repeating the same information at every stage of liquidation, insolvency professionals will now be required to report only stage-specific and relevant details as the process progresses.
The first form under the new framework, Form LIQ-1, is required to be filed at the commencement of liquidation. It captures basic details of the corporate debtor and confirms that the public announcement under the Liquidation Regulations has been made. This form must be filed on or before the 10th day of the month following the month in which the public announcement is issued.
The second form, Form LIQ-2, is a periodic filing intended to apprise the adjudicating authority and the Board of the quarterly progress of the liquidation process. It includes information relating to valuation, realisation of assets, progress of sales, receipts and payments, status of avoidance applications, and meetings of the Stakeholders’ Consultation Committee. This form must be filed on or before the 10th day of the month following submission of the progress report to the adjudicating authority. While the revised framework applies from January 1, 2026, Form LIQ-2 will be made available on the IBBI portal from February 1, 2026.
Form LIQ-3 is required to be filed when the liquidator applies for dissolution of the corporate debtor or closure of the liquidation process. This form covers the period from the last progress report up to the filing of the dissolution or closure application and includes details of realisation, distribution of proceeds, unclaimed amounts, and receipts and payments. It must be filed by the 10th day of the month following submission of the application to the adjudicating authority.
The final form, Form LIQ-4, is to be filed after the adjudicating authority passes an order for dissolution or closure of the liquidation process. This form captures post-order details such as final distributions and receipts and payments, and must be filed within seven days of the dissolution or closure order.
IBBI clarified that all revised forms, except LIQ-2, are available on the Board’s website from January 1, 2026, and that the existing liquidation forms stand discontinued from that date. All filings must be made only through the revised forms by the insolvency professional who is in office as liquidator as on the last date of the month preceding the due date.
To facilitate a smooth transition, the Board has provided that no penalty will be levied for delayed filing of liquidation forms during the initial quarter from January to March 2026. The regulator has also introduced a form-modification utility on its electronic platform, enabling insolvency professionals to correct errors or omissions in submitted forms through an OTP-based authentication process. No fee will be charged if a form is filed and modified before the due date.
At the same time, IBBI has clarified that insolvency professionals will continue to be responsible for compliance under the Code and the regulations. Failure to file forms, or filing inaccurate or incomplete information, will attract liability under the Insolvency and Bankruptcy Code, 2016. The Board stated that the revised framework is expected to significantly reduce time and effort required for compliance while ensuring that essential liquidation-related information continues to be reported in a timely and structured manner, thereby improving regulatory oversight of liquidation proceedings.
Circular No: IBBI/LIQ/91/2026
Date: January 05, 2026
