IBBI Current Affairs

IBBI notifies rules for bankruptcy probe

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.

New regulations

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.

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Insolvency and Bankruptcy Board sets up two advisory committees

The Insolvency and Bankruptcy Board of India (IBBI) has set up two high-level advisory committees to gather inputs from experts, including on service providers and corporate liquidation.

IBBI has been set up under the Insolvency and Bankruptcy Code, 2016 and is expected to soon operationalize. The two committees have begun their deliberations.

Key Facts

  • The advisory committee on services: It will be headed by educationist Mohandas Pai. It includes National Stock Exchange Vice-Chairman Ravi Narain, SEBI Executive Director J Ranganayakulu, National Institute of Public Finance and Policy’s Professor Ajay N Shah and senior lawyer Amarjit Singh Chandiok.
  • The advisory committee on corporate insolvency and liquidation: It will be headed by noted banker Uday Kotak. It includes Credit Information Bureau Chairman M V Nair, Corporate and Economic Research Group Advisory’s Chairperson Omkar Goswami and BSE CEO Ashishkumar Chauhan.

About IBBI

  • IBBI seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
  • It has been set up by the code to regulate professionals, information utilities (IUs) and agencies engaged in the resolution of insolvencies of companies.
  • It has chairman and 10 members. Present chairman is M S Sahoo. There four government-nominated members.

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