The Insolvency and Bankruptcy Board of India (IBBI) on October 20, 2023, issued the Discussion Paper on “Rationalisation of the Regulatory Framework for Enhancing the Effectiveness of Insolvency Professional Entities in Insolvency Resolution Process”.
The following has been stated namely: -
• This paper seeks to implement measures to enhance the effectiveness of Insolvency Professional Entities (the entities or IPE) by rationalising the regulatory framework to meet the emerging requirements arising due to evolving role of the entities in conducting the insolvency resolution process under the Insolvency and Bankruptcy Code.
• The proposals are envisaged to facilitate better implementation of the regulatory framework of IPEs. It will provide clarity and flexibility to the IPEs to perform their functions within the purview of the regulatory framework.
• The following issues are covered in the paper: -
1. Monitoring of IPE acting as IP
2. Related Party Definition for an IPE acting as IP
3. Restriction on the Number of Assignments by an IP
4. Minimum Fee Structure of an IPE acting as IP
• Comments on the following are requested: -
1. Proposals in the discussion
2. Draft amendments to Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 – Annexure - I
3. Draft Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 – Annexure II
4. Draft Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 - Annexure-III.
• Comments may be submitted electronically by November 11, 2023, in the prescribed format.
