The insolvency regulator has directed insolvency professionals (IPs) to scrutinise corporate insolvency resolution processes (CIRPs) for possible misuse of the insolvency framework and approach the adjudicating authority when there are reasonable grounds to suspect fraudulent or malicious intent. In a circular, the Insolvency and Bankruptcy Board of India (IBBI) has flagged six indicators that should trigger closer scrutiny by IPs. The purpose of the guidelines is to prevent misuse of insolvency and bankruptcy code (IBC) through proxy or connected entities to gain control of the insolvency process without a genuine objective of resolving the distressed company.