Synopsis
New draft rules will require personal guarantors of stressed companies to declare all personal assets. This includes crypto, jewellery, and foreign holdings. The Insolvency and Bankruptcy Board of India is tightening disclosure requirements. These regulations aim to cover assets indirectly owned or controlled by guarantors. This move impacts thousands of applications filed under the IBC.
Promoters or directors who have provided surety for a stressed company’s debt will be required to declare their holdings of crypto, jewellery, works of art, high-end watches, beneficial ownerships and foreign assets, as part of reporting personal wealth during bankruptcy resolution, according to the draft regulations floated by the insolvency regulator.
The personal guarantors to corporate debtors will have to disclose their own assets, as stipulated under a dozen categories, regardless of the fact that they have filed for bankruptcy voluntarily or are compelled by creditors into doing so.
These categories cover a wide spectrum of tangible and intangible assets, reflecting the Insolvency and Bankruptcy Board of India’s (IBBI’s) intent to tighten disclosure requirements.
The draft regulations are firmed up by a five-member panel, set up by the IBBI under its wholetime member Jayanti Prasad, to align with the Insolvency and Bankruptcy Code (Amendment) Bill, 2025.
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The asset categories specified by the panel cover cash and bank deposits; business interests and commercial assets; domestic and overseas investments; immovable property; retirement and provident fund assets; digital assets, including crypto, virtual digital assets and non-fungible and digital tokens; intellectual property and intangible assets; valuable movable assets; agricultural assets and livestock; receivables and advances; claims and contingent assets; and employee stock options and beneficial ownership interests.
The panel has proposed to make this the “statement of assets” disclosure mandatory by inserting a new section—6A—in the Insolvency Resolution Process for Personal Guarantors to Corporate Debtors Regulations, 2019.
As many as 4,386 applications were filed until December 2025 since personal guarantors were brought under the IBC ambit in December 2019, showed the latest IBBI data. Of these, 662 applications were filed by the guarantors themselves involving a debt of Rs 30,949 crore and 3,724 by creditors for a debt of Rs 2.55 lakh crore.
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The wide coverage ensures that the assets indirectly owned or controlled by a personal guarantor would also be covered. “This takes care of the concerns that often most of these guarantors may not be holding assets in their names,” said a senior official.
Even the assets over which an individual exercises influence, or derives financial benefit from (such as intellectual property rights) are covered.
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