IBBI Simplifies Liquidation Reporting With Four New Online Forms

The Insolvency and Bankruptcy Board of India (IBBI) has introduced a simplified framework for reporting liquidation updates to the board. To facilitate the same, the Board has introduced four new online forms that track a company's liquidation from start to finish. In a circular issued on Monday (Januray 5) , the Board said the revised system applies from January 1, 2026, and replaces the existing liquidation reporting framework. All liquidation-related filings must now be made only on the IBBI's electronic platform, within prescribed timelines and using a digital signature or e-signing, as required under the amended IBBI (Liquidation Process) Regulations, 2016. As per the new framework, Instead of repeating the same information at every stage, insolvency professionals will now report only what is relevant to where the liquidation stands. The first form, LIQ-1, is filed at the start of liquidation. It records basic details of the corporate debtor and confirms that the public announcement has been made. It is to be filed filed by the 10th of the month following the public announcement. LIQ-2 is a periodic filing appraise the adjudicating authority about quarterly progress of the liquidation. It reflects how the liquidation is progressing, including valuation, realisation of assets, receipts and payments, and the overall status of the process. It is to be filed by the 10th of the subsequent month after the submission of the Progress report. LIQ-3 is filed once the liquidator applies for dissolution of the corporate debtor or closure of the liquidation process. It is to be filed by the Filed by the 10th of the subsequent month following the final closure or dissolution. The last form, LIQ-4, is filed after the adjudicating authority passes the order for dissolution or closure of the liquidation process. This last form is to be filed within 7 days of the dissolution order. The IBBI said the revised forms have been designed to eliminate duplication and rationalise data requirements, with information already available on the portal being carried forward automatically. “Consequently, these revisions are expected to significantly reduce the time and effort required for compliance by insolvency professionals, while continuing to ensure that the Board receives all essential information in a timely manner,” the circular said. To help insolvency professionals transition to the new system, the Board said no penalty will be levied for delayed filing of forms during the initial quarter from January to March 2026. The regulator has also introduced a form-modification utility on its electronic platform. Where an insolvency professional identifies an error or omission in a submitted form, it can be corrected online through an OTP-based authentication process. No fee will be charged if the form is filed and modified before the due date. At the same time, the IBBI clarified that insolvency professionals remain responsible for compliance. Failure to file forms, or submission of inaccurate or incomplete information, will continue to attract liability under the Code Forms LIQ-1, LIQ-3 and LIQ-4 are already available on the IBBI website. Form LIQ-2 will be made available from February 1, 2026. Circular No: IBBI/LIQ/91/2026 Date: January 05, 2026 Click Here to Read Circular

IBBI Simplifies Liquidation Reporting With Four New Online Forms

Shivangi Bhardwaj

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