The Insolvency and Bankruptcy Board of India (IBBI) on September 28, 2022, issued the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Fourth Amendment) Regulations, 2022 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
The following amendments have been stated:
• In regulation 4 which specifies ‘Eligibility’, after sub-regulation (1), the sub-regulation (2) has been inserted, namely: -
(2) No insolvency professional entity, recognised by the Board under regulation 13, shall be eligible to be registered as an insolvency professional, if the entity and/or any of its partner or director, as the case may be, is not fit and proper person under clause (g) of sub-regulation (1).
• After sub-regulation (1) of regulation 6 which specifies ‘Application for certificate of registration, the sub-regulation (1A) has been inserted namely: -
(1A) An insolvency professional entity eligible for registration as an insolvency professional under sub-regulation (2) of regulation 4 may make an application to the Board in Form AA of Second Schedule along with a non-refundable application fee of two lakh rupees.
• In regulation 7 which specifies ‘Certificate of registration’, in sub-regulation (2), after clause (h), the clause (ha) has been inserted, namely: -
“(ha) in case an insolvency professional entity is an insolvency professional, it shall allow only a partner or director, as the case may be, who is an insolvency professional and holds a valid authorisation for assignment to sign and act on behalf of it”
• In regulation 12 which specifies ‘Recognition of Insolvency Professional Entities’, in sub-regulation (1), clause (c) has been substituted as under, namely: -
“(c) majority of its equity shares and voting rights are held by insolvency professionals, who are its directors, in case it is a company”
• In regulation 13, in sub-regulation (2), in clause (b), after the second proviso, the following proviso has been inserted, namely:
“Provided further that in case the insolvency professional entity is enrolled with an insolvency professional agency, the intimation under this clause shall also be made to such insolvency professional agency to update its register of professional members.”
• In regulation 13, in sub-regulation (2), in clause (c), after the second proviso, the following proviso has been inserted, namely:
“Provided further that in case the insolvency professional entity is enrolled with an insolvency professional agency, the intimation under this clause shall also be made to such insolvency professional agency to update its register of professional members.”
• In Second Schedule, after Form A, form AA has been inserted.
These regulations will come into force on the date of publication in the Official Gazette.
[Notification No. IBBI/2022-23/GN/REG099]
