The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021

Jul 23, 2021 | by Avantis RegTech Legal Research Team

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Secretarial Compliance

The Insolvency and Bankruptcy Board of India (IBBI) on July 22, 2021 has issued the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

The amendments are as followed:

• In Regulation 5, which specifies Qualifications and experience Sub-clause (iii) has been substituted, namely:

“Experience of - 

(a) ten years in the field of law, after receiving a Bachelor’s degree in law; 

(b) ten years in management, after receiving a Master’s degree in Management or two- year full time Post Graduate Diploma in Management; or 

(c) fifteen years in management, after receiving a Bachelor’s degree, 

from a university established or recognised by law or an Institute approved by All India Council of Technical Education; or”   

• Regulation 9, which specifies, Registration for a limited period has been omitted.

• In Regulation 12, which specifies Recognition of Insolvency Professional Entities, sub-regulation (3) & (4) have been inserted, namely:

 “(3) The Board shall acknowledge an application made under this regulation within seven days of its receipt.” 

“(4) The Board may, after examination of the application,- 

(i) require the applicant to submit, within reasonable time, additional documents, information or clarification; 

(ii) inspect or inquire the applicant; 

(iii) require any of the directors or partners of the applicant to appear, within a reasonable time, before it in person for any clarifications, 

as may be necessary for the purpose of considering the application.” 

• Regulation 13 sub – regulation (1) has been Substituted, namely:

“(1) (a) Where the Board, after consideration of the application under sub-regulation (4) of regulation 12,- 

(i) is satisfied that the applicant is eligible under these Regulations, it may grant a certificate of recognition as an insolvency professional entity within sixty days of receipt of the application, excluding the time taken by the applicant for submitting additional documents, information or clarification, or appearing in person, as the case may be, under sub-regulation (4) of regulation 12; 

(ii) is of the prima facie opinion that the recognition ought not be granted, it shall communicate such opinion along with reasons thereof and provide the applicant an opportunity to submit its explanation within fifteen days of the receipt of the communication from the Board, to enable it to form a final opinion. 

(b) The Board shall, within thirty days of receipt of the explanation, if any, submitted by the applicant under clause (a), - 

(i) grant a certificate of recognition as an insolvency professional entity; or (ii) reject the application by an order, after recording reasons thereof. 

(c) The Board shall grant a certificate of recognition as an insolvency professional entity under clause (a) or (b) in Form D of the Second Schedule.”; 

• In First Schedule, which specifies, code of conduct of Insolvency Professionals, after clause 22, the following Clarification has been Inserted, namely:

“Clarification: An insolvency professional may, at any point of time, not have more than ten assignments as resolution professional in corporate insolvency resolution process, of which not more than three shall have admitted claims exceeding one thousand crore rupees each.” 

[Notification No. IBBI/2021-22/GN/REG077]

 


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