Section 240 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 240 lets the Insolvency and Bankruptcy Board of India (the Board) make regulations "consistent with this Code and the rules made thereunder". Its sub-section (2) is a long list of matters, from the manner of accepting electronic submissions to the procedure for restitution. This article groups the clauses by subject, shows how the Insolvency and Bankruptcy Code (Amendment) Act, 2026 changes the list, and maps the regulation sets in the source folder to the sections they implement. It follows the IBBI consolidated text of the Code amended up to 12 August 2021.
Sub-section (1): the Board may, by notification, make regulations consistent with the Code and the rules, "to carry out the provisions of this Code". Sub-section (2): without prejudice to that, regulations may provide for the matters listed from clause (a) to clause (zzzc), almost every one of which points to a section of the Code that leaves a form, manner, time, fee or condition "as may be specified". The 2026 Act changes "provisions" to "purposes", adds many clauses (for example for the creditor-initiated process), substitutes some and omits clauses (ze), (zf), (zg) and (zl).
Sub-section (1): the general power
"The Board may, by notification, make regulations consistent with this Code and the rules made thereunder, to carry out the provisions of this Code."
The limits are in the text: the regulations must be consistent with the Code and the rules made under it. Section 239 is the Central Government's power to make rules (see article 139). Section 241 requires every rule and regulation to be laid before Parliament (article 142). When a form or a time limit is in question, a regulation may carry the answer; a legal consultation can help trace the clause of section 240 that authorises it.
Sub-section (2): the matters, grouped by subject
Sub-section (2) says: "In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely". The clauses, grouped, as per the consolidated text:
| Subject | Clauses | Sections they point to |
|---|---|---|
| Definitions | (a) to (e), (ea) | section 3 (definitions) and section 5 (costs and liquidation cost) |
| Applications | (f), (h) | sections 7(3) and 10(3) |
| Moratorium, announcement, claims | (i), (ia), (j), (ja) | sections 14, 15 |
| Interim resolution professional and committee of creditors | (k) to (t), (na) to (nc), (sa) | sections 17, 18, 21, 24, 25 |
| Information memorandum and resolution plan | (u) to (wa) | sections 29, 30 |
| Liquidation | (x) to (zk) | sections 34, 35, 36, 37, 38, 39, 41, 52, 53 |
| Pre-packaged process | (zka) to (zkw) | sections 54A to 54-O |
| Fast track and voluntary liquidation | (zl), (zm) | sections 57, 59 |
| Individuals | (zn) to (zs) | sections 95, 105, 107, 109, 133, 144 |
| The Board | (zt) to (zx) | sections 194, 196, 197 |
| Insolvency professional agencies | (zy) to (zze) | sections 200, 201, 202, 204 |
| Governing board and examinations | (zzf), (zzg) | section 196 (Explanation, clauses (e), (l), (m)) |
| Insolvency professionals | (zzh) to (zzj) | sections 207, 208 |
| Information utilities | (zzk) to (zzx) | sections 210 to 216 |
| Complaints, inspection, discipline | (zzy) to (zzzb) | sections 217, 218, 219, 220 |
| Funds | (zzzc) | section 222(1)(c) |
The Code leaves many details to these regulations. They are not in the texts consulted in the form needed to state a detail, so no time limit, fee or form is stated here.
Printing points, as printed. Clause (g) is shown as omitted ("Omitted by Act No. 26 of 2018"). Clause (zzj) refers to "clause (f) of sub-section (2) of section 208", whereas section 208(2) as printed has clauses (a) to (e); the matching words are in clause (e) ("in such manner and subject to such conditions as may be specified"). Clause (zzzb) refers to "sub-section (6)" and "sub-section (7)" of section 220, whereas section 220 as printed has sub-sections (1) to (6). Clause (zzo) prints "filling appeal". Each is quoted as printed and not corrected.
Example (invented): a resolution professional who asks how a creditors' meeting is to be conducted finds the matching entry in clause (r) ("the manner of conducting the meetings of the committee of creditors under sub-section (8) of section 24"); the answer itself is in the regulation set, not in section 240.
What the Amendment Act, 2026 changes
Section 70 of the Amendment Act amends section 240.
| Change | Clauses and the Act's words (as printed) |
|---|---|
| Sub-section (1) | "for the word 'provisions', the word 'purposes' shall be substituted" |
| Corporate process, new clauses | (eb) conditions under the Explanation to clause (26) of section 5; (fa) other information under clause (e) of sub-section (3) of section 9; (ha) the manner under sub-section (1) of section 12A; (oa) any other class or classes of creditors who may attend the meetings of the committee of creditors under the proviso to sub-section (11) of section 21; (ta) the manner and conditions under sub-section (1) of section 28A; (wb) the form, manner and conditions under the second proviso to sub-section (1) of section 31; (wc) the manner and conditions for restoring the corporate insolvency resolution process and completing it under sub-section (1A) of section 33; (wd) the conditions under the proviso to sub-section (2) of section 33 |
| Corporate process, substituted or amended | (h) "the other document or any other information under clause (a) of sub-section (3) of section 10"; (n) adds "the manner under clause (b),"; (w) replaced by words covering the manner of payment of debts of operational creditors, of financial creditors who do not vote for the resolution plan, and the conditions and manner for constitution of a committee |
| Liquidation | (x) substituted ("the form of written consent from insolvency professional under sub-section (6) of section 34") with (xa) carrying the earlier fee matter; new (xb) written consent under section 34A(1); (y) adds "the manner of maintaining an updated list of claims of creditors under clause (a),"; (z) substituted ("the manner in which the committee of creditors shall supervise the conduct of the liquidation process by the liquidator under sub-section (2) of section 35"); (zia), (zja) to (zje), and (zk) substituted ("the manner under the proviso to sub-section (2A) of section 54") |
| Pre-packaged process | (zke) substituted ("the information to be furnished under sub-section (3) of section 54C") |
| Creditor-initiated process | New (zla) to (zll) on sections 58B, 58C, 58E, 58F, 58G, 58H, 58-I and 58K (manners, forms, periods, conditions, the resolution professional's report and public announcement) |
| Voluntary liquidation | (zm) "conditions, procedural requirements, and period"; new (zma) and (zmb) on section 59(5A) and (5C) |
| Board | (zv) adds "standards of conduct of the committee of creditors and its members under clause (sa),"; new (zzsa) the manner under clause (e) of section 214; new (zzwa) the manner and period under sub-section (4) of section 215; (zzza) substituted: "the manner and period under section 219" |
| Omitted | Clauses (ze), (zf), (zg) (claims in liquidation) and (zl) (fast track) |
Notes on the changes. Clause (zja) repeats the words of the old clause (zk) ("the period and the manner of distribution of proceeds of sale under sub-section (1) of section 53"), and (zk) is then substituted with a different matter. The Act's quotation of the old words of clause (w) differs from the consolidated text only by a comma after "under clause (d)"; the replacement is clear. Clauses (ze), (zf) and (zg) concern claims in liquidation (sections 38, 39 and 41) and clause (zl) concerns fast track (section 57), all sections that the 2026 Act omits.
The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether this change has been notified. The date of a regulation set does not show that any provision of the Amendment Act, 2026 is in force.
Map of the regulation sets in the source folder
The sets are named as their own first lines name them; the copy consulted is amended up to the date printed under the title. This article takes nothing else from them.
| Regulation set | Copy consulted amended up to | Part of the Code it serves |
|---|---|---|
| Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 | 09-06-2026 | the corporate insolvency resolution process, Part II, Chapter II |
| Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 | 22-09-2026 | liquidation, Part II, Chapter III |
| Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 | 02-06-2026 | the pre-packaged process, Part II, Chapter III-A |
| Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 | 07.02.2018 | the fast track process, Part II, Chapter IV |
| Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 | 02-06-2026 | voluntary liquidation, section 59 |
| Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 | 02-06-2026 | insolvency resolution of personal guarantors, Part III, Chapter III |
| Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 | 02-06-2026 | bankruptcy of personal guarantors, Part III, Chapters IV and V |
| Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 | 13-05-2026 | sections 203 and 205 |
| Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016 | 04.07.2022 | sections 199 to 204 |
| Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 | 20-11-2025 | sections 206 to 208 |
| Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 | 02-06-2026 | sections 209 to 216 |
| Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 | 03-06-2026 | section 217 |
| Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 | 02-06-2026 | sections 217 to 220 |
| Insolvency and Bankruptcy Board of India (Employees' Service) Regulations, 2017 | 06-07-2022 | section 194 |
| Insolvency and Bankruptcy Board of India (Engagement of Research Associates and Consultants) Regulations, 2017 | 01-06-2022 | section 194 |
The last column gives the Part, Chapter or sections of the Code that each set concerns. No rule or regulation on the creditor-initiated process, on group insolvency or on the fresh start process is in the texts consulted; the detail is left to rules and regulations that are not in them. For the Board itself, see our post on the IBBI under sections 188 to 198.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help finding the regulation behind a step?
When a form, a period or a manner is "as may be specified", the answer is in a regulation or a rule. Our team can help trace the clause of section 239 or 240 that authorises it, and check the text you hold, in a legal consultation.
Key takeaways
- The Board's regulations must be consistent with the Code and the rules; the general power is in sub-section (1).
- Sub-section (2) lists matters from clause (a) to (zzzc); most leave a form, manner, time or fee to be specified.
- The 2026 Act changes "provisions" to "purposes", adds and substitutes many clauses, and omits (ze), (zf), (zg) and (zl).
- The date of a regulation set does not show that any provision of the Amendment Act, 2026 is in force.
- The Amendment Act, 2026 comes into force by notification; check whether it has been notified.
Read next
- Section 239: power of the Central Government to make rules
- Sections 241 and 242: laying of rules before Parliament and power to remove difficulties
- Sections 240B and 240C: electronic portal and rules for cross-border insolvency
- IBBI: the Insolvency and Bankruptcy Board of India
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.