Government notifies Insolvency and Bankruptcy Code changes to help MSMEs
The government just tweaked the Insolvency and Bankruptcy Code to give micro, small, and medium enterprises (MSMEs) a smoother ride if they hit financial trouble.
The new rules aim to cut down on costs and paperwork, while also tightening up who gets involved in resolving these cases, so there's less chance of conflicts of interest.
These changes were notified on May 22, 2026.
Single valuer rule, conflicted valuers barred
Now, MSMEs only need one registered valuer per asset class (unless the committee has a solid reason for needing two), which should help keep expenses in check.
Plus, stricter rules mean that anyone with close ties to the business (like recent auditors or related parties of the corporate debtor) cannot be appointed as valuers.
The goal: make sure everything stays fair and transparent when businesses are trying to bounce back.