The Insolvency and
Bankruptcy Board of India (IBBI), in exercise of its powers conferred under Section
240 of the Insolvency and Bankruptcy Code, 2016 (Code), has notified today the
Insolvency and Bankruptcy Board of India (Insolvency Professionals)
Regulations, 2016. These regulations inter alia provide for registration,
regulation and oversight of insolvency professionals under the Code. These
Regulations shall come into effect from 29th November, 2016.
The following categories of
individuals are eligible for registration as an insolvency professional:
·
Advocates,
Chartered Accountants, Company Secretaries and Cost Accountants with 10 years’
of post-membership experience (practice or employment) or a Graduate with 15
years’ of post-qualification managerial experience, on passing the Limited
Insolvency Examination, or
·
Any
other individual on passing the National Insolvency Examination.
However, Advocates, Chartered
Accountants, Company Secretaries and Cost Accountants with more than 15 years’
of practice experience may seek registration, without any examination. But applications
for such registration need to be made till 31st December, 2016 and such
registration shall be valid for a limited period of six months.
There shall be a ‘National Insolvency
Examination’ the details of which will be specified through regulations. There
shall also be ‘Limited Insolvency Examination’. The
syllabus, format and frequency of the ‘Limited Insolvency Examination’,
including qualifying marks, shall be published on the website of the Board at
least one month before the examination.
A limited liability partnership, a registered
partnership firm and a company may be recognised as an insolvency professional
entity if a majority of the partners of the limited liability partnership or
registered partnership firm or a majority of the whole-time directors of the
company are registered as insolvency professionals under the Code. An
insolvency professional may use the organisational resources of a recognised insolvency
professional entity subject to the condition that the entity as well as the
insolvency professional shall be jointly and severally liable for all acts of
omission or commission of its partners or directors as insolvency professionals.
These regulations are
available at www.mca.gov.in and www.ibbi.gov.in.
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DSM/KA