Insolvency and Bankruptcy Board of India Current Affairs - 2019
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Insolvency and Bankruptcy Board of India (IBBI) has tightened norms that governs resolution professionals (RPs), wherein they would be barred from having employment when they are in possession of authorisation to take up work under insolvency law. Also, restrictions will also be in place for relatives of RPs in accepting employment after completion of resolution process. For this purpose IBBI has amended respective regulations.
IBBI (Insolvency Professionals) Regulations, 2019
With this notified regulation Insolvency and Bankruptcy Board of India amends Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
Salient Amendments effected are:
- An Insolvency Professional (IP) should not take up any assignment unless he/she holds an Authorisation for Assignment issued by insolvency professional agency concerned. This provision is effective from 1 January 2020. This would be applicable for an individual acting as an interim resolution professional, (or resolution professional), bankruptcy trustee, liquidator, authorised representative or in any other role under Insolvency and bankruptcy Code (IBC), 2016.
- An Insolvency Professional (IP) should not engage in any employment when he holds an Authorisation for Assignment/when he is undertaking an assignment. Although he may surrender Authorisation for Assignment when he wishes to take up employment.
- Resolution professional, and his or her relatives, cannot accept any employment (other than an employment secured through open competitive recruitment) from successful resolution applicant concerned for one year.
- Insolvency professional shall not appoint any of his relatives or related parties, in connection with any work relating to any of his assignment.
IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2019
Salient Amendments effected are:
- An insolvency professional agency shall issue or renew an Authorisation for Assignment to insolvency professionals in accordance with its Bye-Laws.
- An individual would be permitted to serve as an independent director on governing board of an insolvency professional agency up to age of 75 years.
About Insolvency and Bankruptcy Board of India (IBBI)
It was formed on 1 October 2016. It was given statutory powers under Insolvency and Bankruptcy Code (IBC), 2016.
It regulates and counters various bad loan cases reported by various creditors, which especially involved banks in India.
It also regulates profession and processes related to insolvency and bankruptcy.
It plays the role of governing body for all Insolvency Resolution Professionals (IRP), Insolvency Professional Agencies (IPA) and Information Utilities (IU).
Tags: Authorisation for Assignment • IBBI (Insolvency Professionals) Regulations 2019 • Insolvency • Insolvency and Bankruptcy Board of India • Insolvency and Bankruptcy Code 2016
Krishnamurthy Subramanian, Chief Economic Adviser (CEA) and B. Sriram, former managing director (MD) and chief executive officer (CEO) of Industrial Development Bank of India (IDBI Bank) were appointed part-time members of Insolvency and Bankruptcy Board of India (IBBI).
K Subramanian, an Indian School of Business (ISB) Hyderabad professor was appointed chief economic adviser for a period of 3 years in December 2018.
Their appointment was approved by Appointments Committee of the Cabinet (ACC), which is composed of Prime Minister of India (who is Chairman), Union Minister of Home Affairs and the order for appointment was issued by Department of Personnel and Training (DoPT).
About Insolvency and Bankruptcy Board of India
- IBBI, an insolvency regulatory agency was established on 1 October 2016. It was given statutory powers by Insolvency and Bankruptcy Code (IBC), the bankruptcy law of India which was passed by Lok Sabha on 5 May 2016.
- The IBC 2016 established Insolvency and Bankruptcy Board of India (IBBI), to oversee insolvency proceedings in India and to regulate entities registered under it.
- The IBBI Governing Board consists of 10 members, including representatives from the Ministry of Finance (MoF), Ministry of Law and Justice, Ministry of corporate affairs (MCA), and Reserve Bank of India (RBI).
- IBBI act as a regulator for overseeing insolvency proceedings and entities such as Insolvency Professionals (IP), Insolvency Professional Agencies (IPA) and Information Utilities (IU) in India.
- IBC covers Individuals, Companies, Partnership firms and Limited Liability Partnerships and handles cases under it using tribunals namely National company law tribunal (NCLT) and Debt recovery tribunal (DRT).