IBBI Proposes UBO Disclosure by Insolvency Bidders
Why in the news
In November 2025 IBBI proposed tougher disclosure for bidders in CIRP, to stop misuse of the IBC’s clean-slate protection.
Key facts
- Prospective Resolution Applicants (PRAs) must name every natural person holding ultimate ownership, control or significant influence, plus intermediate entities with jurisdiction and control chain.
- The Section 32A affidavit confirms eligibility; that section shields a company post-resolution from prosecution for earlier offences.
- Aim: block benami, proxy, conflicted or promoter-linked bidders.
| Area | Change |
|---|---|
| Listed entities | Possible relaxed regime, as SEBI already requires ownership reporting |
| Due diligence | RPs and CoC get richer bidder data |
| Financial crime | RPs may approach special PMLA courts |
| Restituted assets | Undertaking that they benefit creditors only |
Exam angle
- UBO = Ultimate Beneficial Ownership.
- Section 32A: immunity for pre-CIRP offences.