IBBI Caps Assignments For Individual Insolvency Professionals At Ten At A Time

The Insolvency and Bankruptcy Board of India has issued the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2025, placing limits on the total number of assignments that an individual insolvency professional may handle at a given time.

The regulations come into force on November 20.

The amendment introduces Regulation 7B titled Number of Assignments, capping the number of assignments an individual insolvency professional may hold, at a time, at ten

It states, “An insolvency professional who is not an insolvency professional entity, shall not at any point of time, have more than ten assignments in aggregate as interim resolution professional and resolution professional in a corporate insolvency resolution process and as a liquidator in a liquidation process, of which not more than three assignments shall have admitted claims exceeding one thousand crore rupees each .”

Professionals who already hold more than the permitted number of assignments on the commencement date of the amendment will not be eligible to take up any new assignments until their active number of assignments falls below the prescribed limit.

The regulations also amend the Code of Conduct for insolvency professionals in the First Schedule by shifting the approval framework relating to the acquisition of assets of the corporate debtor by an insolvency professional or their related parties. Such acquisition, permitted only when it does not impair objectivity or independence in the process, will now require the prior approval of the Adjudicating Authority rather than the approval of the Board.

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