New Delhi, April 16 -- Banks initiating bankruptcy proceedings without replacing existing management in defaulting companies will set a monetary threshold above which the distressed firm must obtain financial-creditor approval, according to a set of draft regulations released by rule maker Insolvency and Bankruptcy Board of India (IBBI) on Wednesday for public feedback.

IBBI said the draft regulations setting the procedures under the 'debtor-in-possession' model of bankruptcy resolution will be finalized after the public consultation period ends on 28 April.

The new model was introduced under the Insolvency and Bankruptcy Code (Amendment) Act of 2026, which got presidential assent on 6 April, to speed up rescue of businesses by reducing...