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The IBBI changes the Insolvency Resolution Process for Corporate Persons Regulations, 2016

The IBBI changes the Insolvency Resolution Process for Corporate Persons Regulations, 2016

On 28th November 2019, The Insolvency and Bankruptcy Board of India published the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2019. Certain amendments made by these Regulations are resulting in the Insolvency and Bankruptcy Code (Amendment) Act, 2019, which came into force on 5th August 2019.

 

Certain amendments notified by Insolvency and Bankruptcy Board of India are:

1. The Insolvency and Bankruptcy Code, 2016 (Code) envisages the corporate insolvency resolution process for restructuring and insolvency resolution of corporate debtors. An insolvency professional conducts the corporate insolvency resolution process and manages its operations during the corporate insolvency resolution process. Keeping in view the responsibilities of the Insolvency Professionals and the importance of corporate insolvency resolution process, the Code casts an obligation on the Insolvency and Bankruptcy Board of India and the Insolvency Professional Agency to observe performance of Insolvency Professionals, and to collect, maintain and disseminate information and records relating to insolvency process of corporate debtors. 

 

2. It also casts an obligation on Insolvency Professionals to forward/submit certain information and records relating to the corporate insolvency resolution process to the Insolvency Professional Agency and Insolvency and Bankruptcy Board of India.

 

3. In the interest of transparency and accountability in conduct of corporate insolvency resolution process and conduct of the Insolvency Professionals, and to facilitate the Insolvency and Bankruptcy Board of India, the Insolvency Professional Agency’s and the Insolvency Professionals to discharge of their statutory obligations, the Amendment Regulations require the Insolvency Professionals to file a set of Forms, covering the life cycle of a corporate insolvency resolution process, online on an electronic platform hosted on the website of the Insolvency and Bankruptcy Board of India at https://www.ibbi.gov.in

 

4. An Insolvency Professional shall be liable to action permissible under the Code, including refusal to issue or renew Authorisation for Assignment, for failure to file a Form or for inaccurate or delayed filing. The Amendment Regulations come into force from 28th November 2019.

 

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