The Insolvency and Bankruptcy Board of India has recently released a charter which has been prepared with inputs from three difference insolvency professional agencies. The charter is not mandatory and is aimed at providing responsibilities as well as guidelines for Insolvency Resolution Professionals and Committee of Creditors (CoC).
The charter is an effort to ensure that all stakeholders have a comprehensive understanding of the various aspects of their roles and responsibilities in a Corporate Insolvency Resolution Process under the Code.
The three insolvency professional agencies that were part of the preparation process have been set up by the CA institute, the Institute of Company Secretaries and the Cost Accountants Institute. According to officials at IBBI, the charter is only indicative and is for the purpose of informing stakeholders rather than mandating them under set guidelines.
According to experts in the Insolvency and Bankruptcy industry, the charter of responsibilities will strengthen the Code. It also further ensures there is no duplication in the roles and responsibilities of the IRP and CoC to smoothen the CIRP.
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