IBBI simplifies enrolment, registration process of insolvency professionals
The Insolvency and Bankruptcy Board India (IBBI) has notified new regulations to simplify the enrolment and registration process for insolvency professionals. The amendments also streamline the exit and attendant compliance obligations in the insolvency profession.
The salient features of the amendments include:
- Introduction of a unified enrolment and registration application form for prospective insolvency professionals to enable submission of common application form for both enrolment and registration processes.
- Introduction of timeline of sixty days for approval of unified application (for enrolment) by the insolvency professional agency (IPA) and of thirty days forwarding the unified application (for registration) to the Board.
- Additional requirements introduced for the IPA to consider while accepting application for surrender of professional membership or expelling the professional member. This includes compliance with respect to payment of fee to the Board, disciplinary order issued by the IPA or the Board, filings and disclosures to the Agency and the Board, arrangements made for the maintenance, preservation and transfer of records and other documents required to be maintained under the relevant regulations, any other requirements, as stipulated under the Code, rules made thereunder and appointment of another insolvency professional being detrimental to such process.
- Reduction of timelines for approval of unified application (for registration) or communicating prima-facie refusal to grant registration to the applicant by the Board.
- Introduction of requirement to furnish intimation to the Board by the IPA in case of acceptance of application for surrender of professional membership, expulsion of professional member, demise of an individual or winding up or dissolution of a company, limited liability partnership or registered partnership firm, who are registered as IPs. Consequent special procedure by the Board has also been introduced.
- Introduction of provision for surrender of certificate of registration by the IP to the Board.
The insolvency regulator believes that these amendments will make the insolvency profession more accessible and attractive, while also ensuring that high standards of competence and professionalism are maintained.
