The Insolvency and Bankruptcy Board of India (IBBI) has notified regulations for inspection and investigation of service providers registered with it.
Under the Insolvency and Bankruptcy Code (IBC) implemented by IBBI, service providers are insolvency professional agencies, entities, professionals and information utilities.
The investigation authority has to serve a notice intimating the entity concerned about the probe at least 10 days in advance. However, this requirement can be done away with on grounds such as apprehensions that the records of the particular service provider might have been destroyed before the probe starts.
About Insolvency and Bankruptcy Board of India (IBBI)
IBBI is the regulator for overseeing insolvency proceedings of service providers like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India. It was given statutory powers through the Insolvency and Bankruptcy Code. It functions under Ministry of Commerce.
The Code provides for a market-determined and time-bound resolution of insolvency proceedings. It became operational in December 2016. It covers Individuals, Companies, Limited Liability Partnerships and Partnership firms. It attempts to simplify the process of insolvency and bankruptcy proceedings and speed up the resolution process for stressed assets in the country.