Summary of the IBBI notification dated 18/09/2023.
This circular is integrated in our free-to-use website ca2013.com.
IBBI Notifies Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2023.
IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. The key highlights from the notification are as below:
- To be eligible for the enrolment with the insolvency professional agency, the applicant shall now be required to complete the existing pre-registration course within twelve months from the date of payment of fee along with the application for the certificate of registration in Part – II of Form A. Meanwhile, an Insolvency Professional (“IP”) entity shall make an application through the IP agency in Part – II of Form AA. Upon receipt of the same, the IP agency shall verify and forward the application to the Board within thirty days from the date of payment of fee.
- The time granted for the grant of certificate of registration has been reduced from 60 days to 30 days of the receipt of the application. The timeline for communicating the reason for not granting the certificate has also been reduced from 45 days to 30 days.
- The IP agency shall now be required to inform IBBI when it strikes the names of the members from its register on account of surrender of membership or expels the member or receives intimation of demise of individual and dissolution of Company/LLP/Partnership Firm.
- An IP may surrender its certificate of registration by making a request to IBBI in writing along with the certificate of registration, the same may be accepted by IBBI within 30 days of receipt and upon acceptance, the registration shall stand cancelled.
- Special procedure for action on surrender and expulsion from the membership has been introduced wherein on receipt of such application, it may call for an explanation from the member by serving a notice as to why the certificate of registration should not be cancelled. After receipt, the Board may decide to cancel the registration or issue direction to complete ongoing assignments and communicate the same within 30 days of receipt of written submission.
- In case IBBI receives intimation of demise of individual or dissolution of Company/LLP/Partnership Firm, the registration shall be deemed to have been cancelled on the date of Demise/Wind-Up/Dissolution as the case may be. In such events, the legal heirs or assignee of the IP shall take steps for delivery of any records or documents or assets that may be in its custody or control.
- IBBI has also rolled out Unified Enrolment and Registration Application in Form A and Form AA substituting the same with the existing Form A and Form AA respectively.
To view the IBBI Notification, click here.