The Insolvency and Bankruptcy Board of India has cancelled the registrations of 207 insolvency professionals during the April–June 2026 quarter for failing to continue satisfying the regulator’s “fit and proper person” requirement.
According to IBBI’s official quarterly data, the action increased the cumulative number of registrations cancelled on fit-and-proper grounds to 235. Before the June quarter, only 28 insolvency professionals had lost their registrations specifically for failing this requirement since the establishment of IBBI in 2016.
Following these cancellations, the number of registered insolvency professionals stood at 4,359 as of 30 June 2026, notwithstanding the registration of eight new professionals during the quarter.
An insolvency professional must remain fit and proper throughout the validity of the registration. In assessing this requirement, IBBI may consider factors including integrity, reputation, character, competence, financial solvency and the absence of convictions or restraint orders.
The cancellation of registration on this regulatory ground does not necessarily mean that every affected professional was involved in fraud or corruption. The circumstances applicable to individual registrations may vary, and affected professionals may pursue remedies available under law.
The development assumes significance because insolvency professionals perform critical functions under the Insolvency and Bankruptcy Code, including managing distressed companies, verifying creditors’ claims, conducting meetings of the Committee of Creditors and facilitating the corporate insolvency resolution process. CA Sansaar