The Insolvency and Bankruptcy Board of India (IBBI) on January 31, 2024, issued the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2024, to further amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
The following provisions have been stated:
• In the First Schedule, which states “Code of Conduct for Insolvency Professionals”:
(i) After clause 22, the following clause shall be inserted, namely:
“22A. An insolvency professional may resign from the assignment, subject to the recommendation of the committee of creditors in a corporate insolvency resolution process, consultation committee in the liquidation process, the debtor or the creditor in the insolvency resolution process of a personal guarantor to the corporate debtor, as the case may be, and the approval of the Adjudicating Authority.
(ii) In clause 23B, the following Explanation shall be inserted, namely:
“Explanation- For the purposes of this clause, the insolvency professional which is an insolvency professional entity may engage or appoint its partners or directors, as the case may be, for or in connection with any work relating to any of its assignment other than work related to valuation and audit of the debtor.”
(iii) In clause 23C, the Explanation shall be renumbered as Explanation 1, and after Explanation 1 so renumbered, the following Explanation shall be inserted, namely:
“Explanation 2.- For the purposes of this clause, the insolvency professional which is an insolvency professional entity may provide any service, other than service related to valuation and audit, for or in connection with the assignment which is being undertaken by any of its partners or directors, as the case may be.”
This notification will come into force from January 31, 2024.
[Notification No IBBI/2023-24/GN/REG 110]
