Insolvency cases involving debt up to ₹100 crore should be handled only by individual insolvency professionals and larger cases should be assigned to insolvency professional entities, according to a study.

The recommendations have been made by the Indian Institute of Insolvency Professionals of ICAI (IIIP-ICAI) in its study titled 'Improving the Regulatory Framework for IPs/IPEs and Strengthening the Profession".

In a release, the institute said the study was undertaken against the backdrop of challenges faced by IPs, including inadequate information flow, complex asset valuation, stakeholder conflicts, and resource constraints.

"Smaller cases, where the debt is up to Rs 100 crore, should be reserved as the exclusive domain of individual Insolvency Professionals (IPs), while large and complex cases involving debt above Rs 500 crore may be assigned exclusively to Insolvency Professional Entities (IPEs).

"The middle bracket (₹100 crore to ₹500 crore) may be left to the convenience and flexibility of stakeholders," it said.

IPs have a key role in the Insolvency and Bankruptcy Code (IBC) framework that provides for resolution of stressed assets in a time-bound and market-linked manner.

Among others, the study has suggested expanding the role of IPs beyond the IBC into related domains, such as the banking sector for restructuring of NPA accounts and the corporate sector in advisory capacities.

Another recommendation is to increase the age limit for IPs from 70 to 75 years.

The institute is promoted by the Institute of Chartered Accountants of India (ICAI).

Published on April 30, 2026