New Electronic Liquidation Forms Under IBC: Key Changes and Exam Facts
The Insolvency and Bankruptcy Board of India (IBBI) has notified a revised set of electronic forms for the liquidation process, aimed at easing compliance for insolvency professionals and improving the accuracy and consistency of regulatory filings. The revamped framework will come into force from January 2026 and forms part of wider reforms to modernise procedures under the Insolvency and Bankruptcy Code (IBC) .
Amendments to Liquidation Process Regulations
The changes follow amendments issued on January 2, 2026 , to the IBBI (Liquidation Process) Regulations, 2016 . Under the amended rules, insolvency professionals must submit liquidation-related forms along with requisite enclosures through IBBI’s electronic platform within stipulated timelines. The regulator stated that the objective is to enhance transparency and oversight while reducing procedural complexity and compliance friction.
Rationalisation and Technology Integration
In an accompanying circular, IBBI explained that the existing liquidation forms have been comprehensively redesigned to eliminate duplication and rationalise data requirements. The upgraded system uses technology to auto-populate information already available on the portal , cutting down repetitive disclosures. This is expected to significantly reduce the time and effort spent on compliance, without compromising the availability of critical information needed for supervision and analysis.
Four Forms for the Entire Liquidation Lifecycle
Under the revised regime, **four consolidated forms—LIQ-1 to LIQ-4—**will capture the complete liquidation lifecycle. Together, they cover commencement and public announcement, periodic progress reports, asset realisation and distribution, details of unclaimed proceeds, meetings of the stakeholders’ consultation committee, and receipts and payments up to dissolution or closure of liquidation.
Transition Period and Filing Safeguards
IBBI clarified that all revised forms, except LIQ-2 , will be available from January 1, 2026 , while LIQ-2 will be enabled from February 1, 2026 ; existing forms will be discontinued accordingly. To ensure a smooth transition, penalty relief has been granted for delayed filings during January–March 2026 . A form-modification utility using OTP-based authentication has also been introduced, though inaccurate or non-filing may invite regulatory action.
Important Facts for Exams
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IBBI regulates insolvency professionals and processes under the IBC
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Liquidation Process Regulations were notified in 2016
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LIQ-1 to LIQ-4 cover the full liquidation lifecycle
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Electronic filing is mandatory for insolvency processes
Month: Current Affairs - January 08, 2026
Category: Economy | Corporate Governance