Section 240 IBC: Power of the Insolvency and Bankruptcy Board of India to Make Regulations

Section 240 of the Insolvency and Bankruptcy Code, 2016 (IBC) authorises the Insolvency and Bankruptcy Board of India (IBBI) to make regulations, by notification, to implement the Code. Such regulations must be consistent with the Code and the rules made under it.

Section 240: Statutory text and regulation-making subjects

The following is the complete list of matters in subsection (2) as supplied in the original webpage. The operative provision and subsequent amendments should always be checked against the official text.

1. Clause (a). the form and the manner of accepting electronic submission of financial information under sub-clause. (a) of clause (9) of section 3.
2. Clause (b). the persons to whom access to information stored with the information utility may be provided under sub-clause. (d) of clause (9) of section 3.
3. Clause (c). the other information under sub-clause. (f) of clause (13) of section 3.
4. Clause (d). the other costs under clause.
5. Clause (e). of sub-section (13) of section 5. (e) the cost incurred by the liquidator during the period of liquidation which shall be liquidation cost under sub-section (16) of section 5.
6. Clause (f). the other record or evidence of default under clause (a), and any other information under clause (c), of sub-section (3) of section 7.
7. Clause (g). the other information under clause. (d) of sub-section (3) of section 9.
8. Clause (h). the period under clause. (a) of sub-section (3) of section 10.
9. Clause (i). the supply of essential goods or services to the corporate debtor under sub-section (2) of section 14.
10. Clause (j). the manner of making public announcement under sub-section (2) of section 15.
11. Clause (k). the manner of taking action and the restrictions thereof under clause. (b) of sub-section (2) of section 17.
12. Clause (l). the other persons under clause. (d) of sub-section (2) of section 17.
13. Clause (m). the other matters under clause. (d) of sub-section (2) of section 17.
14. Clause (n). the other matters under sub-clause. (iv) of clause (a), and the other duties to be performed by the interim resolution professional under clause (g), of section 18.
15. Clause (o). the persons who shall comprise the committee of creditors, the functions to be exercised such committee and the manner in which functions shall be exercised under the proviso to sub-section (8) of section 21.
16. Clause (p). the other electronic means by which the members of the committee of creditors may meet under sub-section (1) of section 24.
17. Clause (q). the manner of assigning voting share to each creditor under sub-section (7) of section 24.
18. Clause (r). the manner of conducting the meetings of the committee of creditors under sub-section (8) of section 24.
19. Clause (s). the manner of appointing accountants, lawyers and other advisors under clause. (d) of sub-section (2) of section 25.
20. Clause (t). the other actions under clause. (k) of sub-section (2) of section 25.
21. Clause (u). the form and the manner in which an information memorandum shall be prepared by the resolution professional sub-section (1) of section 29.
22. Clause (v). the other matter pertaining to the corporate debtor under the Explanation to sub-section (2) of section 29.
23. Clause (w). the manner of making payment of insolvency resolution process costs under clause (a), the manner of repayment of debts of operational creditors under clause (b), and the other requirements to which a resolution plan shall conform to under clause (d), of sub-section (2) of section 30.
24. Clause (x). the fee for the conduct of the liquidation proceedings and proportion to the value of the liquidation estate assets under sub-section (8) of section 34.
25. Clause (y). the manner of evaluating the assets and property of the corporate debtor under clause (c), the manner of selling property in parcels under clause (f), the manner of reporting progress of the liquidation process under clause (n), and the other functions to be performed under clause (o), of sub-section (1) of section 35.
26. Clause (z). the manner of making the records available to other stakeholders under sub-section (2) of section 35.
27. Clause (za). the other means under clause. (a) of sub-section (3) of section 36.
28. Clause (zb). the other assets under clause. (e) of sub-section (4) of section 36.
29. Clause (zc). the other source under clause. (g) of sub-section (1) of section 37.
30. Clause (zd). the manner of providing financial information relating to the corporate debtor under sub-section (2) of section 37.
31. Clause (ze). the form, the manner and the supporting documents to be submitted by operational creditor to prove the claim under sub-section (3) of section 38.
32. Clause (zf). the time within which the liquidator shall verify the claims under sub-section (1) of section 39.
33. Clause (zg). the manner of determining the value of claims under section 41.
34. Clause (zh). the manner of relinquishing security interest to the liquidation estate and receiving proceeds from the sale of assets by the liquidator under clause (a), and the manner of realising security interest under clause. (b) of sub-section (1) of section 52.
35. Clause (zi). the other means under clause. (b) of sub-section (3) of section 52.
36. Clause (zj). the manner in which secured creditor shall be paid by the liquidator under sub-section (9) of section 52.
37. Clause (zk). the period and the manner of distribution of proceeds of sale under sub-section (1) of section 53.
38. Clause (zl). the other means under clause. (a) and the other information under clause. (b) of section 57.
39. Clause (zm). the conditions and procedural requirements under sub-section (2) of section 59.
40. Clause (zn). the details and the documents required to be submitted under sub-section (7) of section 95.
41. Clause (zo). the other matters under clause. (c) of sub-section (3) of section 105.
42. Clause (zp). the manner and form of proxy voting under sub-section (4) of section 107.
43. Clause (zq). the manner of assigning voting share to creditor under sub-section (2) of section 109.
44. Clause (zr). the manner and form of proxy voting under sub-section (3) of section 133.
45. Clause (zs). the fee to be charged under sub-section (1) of section 144.
46. Clause (zt). the appointment of other officers and employees under sub-section (2), and the salaries and allowances payable to, and other terms and conditions of service of, such officers and employees of the Board under sub-section (3), of section 194.
47. Clause (zu). the other information under clause. (i) of sub-section (1) of section 196.
48. Clause (zv). the intervals in which the periodic study, research and audit of the functioning and performance of the insolvency professional agencies, insolvency professionals and information utilities under clause (r), and mechanism for disposal of assets under clause (t), of sub-section (1) of section 196.
49. Clause (zw). the place and the time for discovery and production of books of account and other documents under clause. (i) of sub-section (3) of section 196.
50. Clause (zx). the other committees to be constituted by the Board and the other members of such committees under section 197.
51. Clause (zy). the other persons under clause. (b) and clause. (d) of section 200.
52. Clause (zz). the form and the manner of application for registration, the particulars to be contained therein and the fee it shall accompany under sub-section (1) of section 201.
53. Clause (zza). the form and manner of issuing a certificate of registration and the terms and conditions thereof, under sub-section (3) of section 201.
54. Clause (zzb). the manner of renewal of the certificate of registration and the fee therefor, under sub-section (4) of section 201.
55. Clause (zzc). the other ground under clause. (d) of sub-section (5) of section 201.
56. Clause (zzd). the form of appeal to the National Company Law Appellate Tribunal, the period within which it shall be filed under section 202.
57. Clause (zze). the other information under clause. (g) of section 204.
58. Clause (zzf). the other grounds under Explanation to section 196.
59. Clause (zzg). the setting up of a governing board for its internal governance and management under clause (e), the curriculum under clause (l), the manner of conducting examination under clause. (m) , of section 196.
60. Clause (zzh). the time within which, the manner in which, and the fee for registration of insolvency professional under sub-section (1) of section 207.
61. Clause (zzi). the categories of professionals or persons, the qualifications and experience and the fields under sub-section (2) of section 207.
62. Clause (zzj). the manner and the conditions subject to which the insolvency professional shall perform his function under clause. (f) of sub-section (2) of section 208.
63. Clause (zzk). the form and manner in which, and the fee for registration of information utility under sub-section (1) of section 210.
64. Clause (zzl). the form and manner for issuing certificate of registration and the terms and conditions thereof, under sub-section (3) of section 210.
65. Clause (zzm). the manner of renewal of the certificate of registration and the fee therefor, under sub-section (4) of section 210.
66. Clause (zzn). the other ground under clause. (d) of sub-section (5) of section 210.
67. Clause (zzo). the form, the period and the manner of filling appeal to the National Company Law Appellate Tribunal under section 211.
68. Clause (zzp). the number of independent members under section 212.
69. Clause (zzq). the services to be provided by information utility and the terms and conditions under section 213.
70. Clause (zzr). the form and manner of accepting electronic submissions of financial information under clause. (b) and clause. (c) of section 214.
71. Clause (zzs). the minimum service quality standards under clause. (d) of section 214.
72. Clause (zzt). the information to be accessed and the manner of accessing such information under clause. (f) of section 214.
73. Clause (zzu). the statistical information to be published under clause. (g) of section 214.
74. Clause (zzv). the form, the fee and the manner for submitting or accessing information under sub-section (1) of section 215.
75. Clause (zzw). the form and manner for submitting financial information and information relating to assets under sub-section (2) of section 215.
76. Clause (zzx). the manner and the time within which financial information may be updated or modified or rectified under section 216.
77. Clause (zzy). the form, manner and time of filing complaint under section 217.
78. Clause (zzz). the time and manner of carrying out inspection or investigation under subsection (2) of section 218.
79. Clause (zzza). the manner of carrying out inspection of insolvency professional agency or insolvency professional or information utility and the time for giving reply under section 219.
80. Clause (zzzb). the procedure for claiming restitution under sub-section (6), the period within which such restitution may be claimed and the manner in which restitution of amount may be made under sub-section (7) of section 220.
81. Clause (zzzc). the other funds of clause. (c) of sub-section (1) of section 222. The Insolvency and Bankruptcy Code 2016.

What does Section 240 mean?

Section 240(1) is the general enabling power. It empowers the Board to issue subordinate legislation in the form of regulations to implement the IBC. The express limits are important: regulations must be consistent with the Code and with rules made under the Code. A regulation cannot override a conflicting statutory requirement.

Section 240(2) lists particular subjects on which regulations may be made. The words "without prejudice to the generality" mean the detailed list illustrates and specifies the regulation-making power without necessarily exhausting the general power in subsection (1), subject to statutory limits.

Important legal definitions

• Board: The Insolvency and Bankruptcy Board of India, established under Section 188 of the IBC.
• Regulation: A legally binding instrument made by the competent statutory regulator under authority delegated by the parent Act.
• Notification: The formal mode specified in the Code for making and publishing regulations; the official Gazette and applicable commencement provisions must be checked.
• Insolvency professional: A person enrolled with an insolvency professional agency and registered with the Board as provided under the Code.
• Information utility: A registered entity that provides information services under the IBC, including prescribed core services.

Principal subjects covered by Section 240

Difference between rules under Section 239 and regulations under Section 240

Section 239 authorises the Central Government to make rules by notification for carrying out the IBC. Section 240 authorises the IBBI to make regulations by notification. Both are forms of delegated legislation, but the rule-making and regulation-making authorities differ. Regulations must comply with the parent Code and the rules.

Section 241 provides for laying rules and regulations before Parliament. That oversight mechanism is separate from the power to issue the instruments.

How IBBI regulations operate in practice

Regulations give operational detail to the statutory framework. For example, the Code establishes corporate insolvency resolution and liquidation mechanisms, while IBBI regulations set out procedures and requirements governing professional conduct, disclosures, meetings, claims and reporting. Applicable requirements depend on the process, commencement date, amendments and transitional provisions.

Important instruments include the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, IBBI (Liquidation Process) Regulations, 2016, IBBI (Insolvency Professionals) Regulations, 2016 and IBBI (Information Utilities) Regulations, 2017, as amended. Consult the IBBI legal framework for the latest consolidated texts, amendment notifications and effective dates.

Frequently asked questions

Who makes regulations under Section 240?

The Insolvency and Bankruptcy Board of India (IBBI), by notification, subject to the IBC and rules made under it.

Can IBBI regulations override the Insolvency and Bankruptcy Code?

No. Section 240(1) expressly requires regulations to be consistent with the Code and rules made under it.

Are Section 239 rules and Section 240 regulations the same?

No. Rules are made by the Central Government under Section 239; regulations are made by the Board under Section 240.

Does Section 240 cover corporate insolvency and liquidation?

Yes. The enumerated matters include corporate insolvency resolution, liquidation, creditor participation, claims, professional registration and information utilities.

Where can the latest IBBI regulations be found?

Use the official IBBI legal framework directory and verify amendment dates and commencement notifications.

Official legislation and regulatory sources

• India Code - Official central legislation
• IBBI - Legal framework, regulations and amendments
• Insolvency and Bankruptcy Board of India
• The Insolvency and Bankruptcy Code, 2016 - Complete index

Reviewed: 23 October 2026. This page provides general legal information. Official statutory and regulatory texts control in case of discrepancy.