Archive · 25 Dec 2025
IBBI Mandates Beneficial Ownership Disclosure in Resolution Plans
The Insolvency and Bankruptcy Board of India (IBBI) has made it mandatory for companies to disclose who really owns them when they submit plans to take over other companies that are in trouble.
This means they have to show all the people who own or control the company, even if it's through other companies.
They also have to say if they are eligible for special legal protections.
This new rule is to make sure everything is clear and to stop people from hiding their real ownership.
Experts say this will help prevent problems later and make sure only the right people can take over these companies.
The rule started on December 23, 2025.
IBBI mandates disclosure of beneficial ownership in resolution plans to increase transparency.
Resolution applicants must provide a statement of beneficial ownership and an affidavit regarding Section 32A eligibility.
The amendments aim to prevent opaque bids and reduce post-resolution disputes.
Experts believe the changes will help identify hidden ownership structures and prevent ineligible promoters from re-entering.
The amendments came into effect on December 23, 2025.
- Who
- Insolvency and Bankruptcy Board of India (IBBI)
- What
- Mandated disclosure of beneficial ownership in resolution plans
- When
- Effective from December 23, 2025
- Where
- India
- Why
- To increase transparency and prevent opaque bids in the resolution process
- Organization
- Insolvency and Bankruptcy Board of India (IBBI)
- New Requirement
- Disclosure of beneficial ownership in resolution plans
- Additional Requirement
- Affidavit regarding eligibility for Section 32A benefits
- Effective Date
- December 23, 2025
- Purpose
- Increase transparency and prevent opaque bids
- Impact
- Reduces post-resolution disputes and ensures rigorous scrutiny
