A set of latest changes to the rules framed by the Insolvency and Bankruptcy Board of India (IBBI) has put additional checks and balances on the actions of the committee of creditors (CoC) involved in the resolution process of bankrupt entities. Under the revised framework, notified through IBBI (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations 2026, the CoC will now be required to provide stronger justification for key decisions taken during the resolution process. For example, the lenders will not only have to consider fair and liquidation values while evaluating bids but also undertake a mandatory market discovery exercise, including a challenge mechanism, which was previously optional in many cases.