Several amendments to the Insolvency and Bankruptcy Board of India (IBBI) regulations were notified by the Board on September 18, 2023.
Under the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2023, a unified enrolment and registration application form is to be launched so that a common application form can be filed for both enrolment and registration processes. The unified application for enrolment has to be approved within 60 days and the unified application for registration has to be forwarded to the Board within 30 days.
The Board has also amended the 2016 regulations on insolvency professionals. Before accepting applications for surrender of professional membership or expelling a professional member, compliance with certain requisites pertaining to fee payment, disciplinary order, etc. must be ensured. Further, the insolvency professionals would be permitted to surrender their registration certificate to the Board, through the introduction of Regulation 10A.
The amendment regulations on the insolvency resolution process for corporate persons provide for additional responsibilities of the Authorised Representative (AR) to facilitate the class of creditors, especially home buyers; review of contents of minutes prepared by the Resolution Professional (RP), providing regular updates to the creditors in a class on the progress of the CIRP, etc. Accordingly, the AR’s fee will also be increased. The committee members will be able to get an audit of the Corporate Debtor (CD) done and such audit costs will be included in the CIRP cost. If the debt has been assigned by the creditor to another person, the creditor has to provide the details of such assignment to the RP within 7 days.