valid as on 18/04/2019

IBC Section 207-Registration of insolvency professionals.
Effective from 15.11.2016

(1) Every shall, after obtaining the membership of any insolvency professional agency, register himself with the Board within such time, in such manner and on payment of such fee, as may be specified by

(2) The Board may specify the categories of professionals or persons possessing such qualifications and experience in the field of finance, law, management, insolvency or such other field, as it deems fit.

Refer clarification dated 15th June, 2017. To view the clarification,Click Here
Refer  Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 . To view the regulations,Click Here

2.3.10:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Temporary surrender.

10. (1) An insolvency professional agency shall inform the Board if any of its professional members has temporarily surrendered his certificate of membership or revived his certificate of membership after temporary surrender, not later than seven days from approval of the application for temporary surrender or revival, as the case may be.

(2) The Board shall take note of the information received under sub-regulation (1).


2.3.11:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Disciplinary proceedings.

11.(1) Based on the findings of an inspection or investigation, or on material otherwise available on record, if the Board is of the prima facie opinion that sufficient cause exists to take actions permissible under section 220, it shall issue a show-cause notice to the insolvency professional.

(2) The show-cause notice shall be in writing, and shall state-

(a) the provisions of the Code under which it has been issued;

(b) the details of the alleged facts;

(c) the details of the evidence in support of the alleged facts;

(d) the provisions of the Code, rules, regulations and guidelines thereunder allegedly violated, or the manner in which the public interest is allegedly affected;

(e) the actions or directions that the Board proposes to take or issue if the allegations are established;

(f) the manner in which the insolvency professional is required to respond to the show-cause notice;

(g) consequences of failure to respond to the show-cause notice; and

(h) procedure to be followed for disposal of the show-cause notice.

(3) The show-cause notice shall enclose copies of documents relied upon and extracts of relevant portions from the report of investigation or inspection, or other records.

(4) A show-cause notice issued shall be served on the insolvency professional in the following manner-

(a) by sending it to the insolvency professional, at the address provided by him or provided by the insolvency professional agency with which he is enrolled , by registered post with acknowledgement due; or

(b) by an appropriate electronic means to the email address of the insolvency professional, provided by him or provided by the insolvency professional agency with which he is enrolled.

(5) The Board shall constitute a Disciplinary Committee for disposal of the show-cause notice.

(6) The Disciplinary Committee shall endeavour to dispose of the show-cause notice within a period of six months of the assignment.

(7) The Disciplinary Committee shall dispose of the show-cause notice assigned under sub-regulation (5) by a reasoned order in adherence to principles of natural justice, and after considering the submissions, if any, made by the insolvency professional, the relevant material facts and circumstances, and the material on record.

(8) The order disposing of a show-cause notice may provide for-

(a) no action;

(b) warning;

(c) any of the actions under section 220(2) to (4); or

(d) a reference to the Board to take any action under section 220(5).

(9) The order passed under sub-regulation (7) shall not become effective until thirty days have elapsed from the date of issue of the order unless the Disciplinary Committee states otherwise in the order along with the reason for the same.

(10) The order passed under sub-regulation (7) shall be issued to the insolvency professional, with a copy issued to the insolvency professional agency with which he is enrolled immediately, and be published on the website of the Board.


2.3.12:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

12. Recognition of Insolvency Professional Entities.

 A company, a registered partnership firm or a limited liability partnership may be recognised as an if –

  its sole objective is to provide support services to insolvency professionals, who are its partners or directors, as the case may be;

it has a net worth of not less than one crore rupees;

 majority of its shares is held by insolvency professionals, who are its directors, in case it is a company;

  majority of capital contribution is made by insolvency professionals, who are its partners, in case it is a limited liability partnership firm or a registered partnership firm;

 majority of its partners or directors, as the case may be, are insolvency professionals;

  majority of its whole time directors are insolvency professionals, in case it is a company; and

 none of its partners or directors is a partner or a director of another insolvency professional entity:

Provided that the insolvency professional entities recognised as on the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 shall comply with the provisions of clauses (a), (b) (c) and (d) on or before 30th September, 2018 and the provisions of clauses (e), (f) and (g) on or before 30th June, 2018.

12. (1) A limited liability partnership, a registered partnership firm or a company may be recognised as an insolvency professional entity if-

(a) a majority of the partners of the limited liability partnership or registered partnership firm are registered as insolvency professionals; or

(b) a majority of the whole-time directors of the company are registered as insolvency professionals, as the case may be.

 A person eligible under sub-regulation (1) may make an application for recognition as an insolvency professional entity to the Board in Form C of the Second Schedule along with an application fee of fifty thousand rupees.

(2) A person eligible under sub-regulation (1) may make an application for recognition as an insolvency professional entity to the Board in of the Second Schedule to these Regulations.

Substituted vide  the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 dated 27.03.2018 effective from 01.04.2018. To view the notification,Click Here

IBBI has de-recognised 13 of the Insolvency Professional Entities who have failed to comply with the provisions of Regulation 12(1) of this Regulations vide its Order dated 17.01.2019. To view the Order, Click Here.

IBBI refrains Insolvency Professional Entities from seeking empanelment with or joining any panel of any market participant vide Circular No. IBBI/IPE/014/2018 dated 6.07.2018. To view the Circular, Click Here

This provision is to be complied on or before 30.09.2018 vide the Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here
This provision is to be complied on or before 30.09.2018 vide the Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here
This provision is to be complied on or before 30.09.2018 vide the Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here
This provision is to be complied on or before 30.09.2018 vide the Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here
This provision is to be complied on or before 30.06.2018 vide the Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here
This provision is to be complied on or before 30.06.2018 vide the Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here
This provision is to be complied on or before 30.06.2018 vide the Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here
Substituted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018. To view the Notification, Click Here
Refer Second Schedule of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.To view the schedule,Click Here

2.3.13:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

13. (1) If the Board is satisfied, after such inspection or inquiry as it deems necessary that the applicant is eligible under these Regulations, it may grant a certificate of recognition as an insolvency professional entity in of the Second Schedule to these Regulations.

(2) The recognition shall be subject to the conditions that the insolvency professional entity shall-

(a) at all times continue to satisfy the requirements under Regulation 12;

inform the Board, within seven days, when an individual ceases to be its director or partner, as the case may be, in of the Second Schedule along with a fee of two thousand rupees;

(b) inform the Board, within seven days, when an insolvency professional ceases to be its director or partner, as the case may be,

 inform the Board, within seven days, when an individual joins as its director or partner, as the case may be, in Form F of the Second Schedule along with a fee of two thousand rupees;

(ca) pay to the Board, a fee calculated at the rate of 0.25 percent of the turnover from the services rendered by it in the preceding financial year, on or before the 30th of April every year, along with a statement in  of the Second Schedule; and

inform the Board, within seven days, when an insolvency professional joins as its director or partner, as the case may be, and

(d) abide by such other conditions as may be specified.

(3) An insolvency professional entity shall be jointly and severally liable for all acts or omissions of its partners or directors as insolvency professionals committed during such partnership or directorship.

Refer Second Schedule of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.To view the schedule,Click Here
Substituted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018. To view the Notification, Click Here
Inserted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018. To view the Notification, Click Here. To view the Form, Click Here
Substituted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018. To view the Notification, Click Here

IBBI provides that Form E and form G shall be submitted electronically for FY 2018-19 by every IP / IPE even if he has not earned any professional fee or does not have turnover during 2018-19 dated 12.04.2019. To view the Circular, Click Here.

Inserted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018. To view the Notification, Click Here. To view the Form, Click Here

The format for informing the Board about ceasing and joining to insolvency professional entity as its director or partner is provided vide Circular No. IBBI/IPE/017/2018 dated 31.08.2018. To view the Circular, Click Here

2.3.14:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

14. Where the Board is of the opinion that sufficient cause exists for   of an insolvency professional entity, it may do so by passing a reasoned order.

IBBI has de-recognised 13 of the Insolvency Professional Entities who have failed to comply with the provisions of Regulation 12(1) of this Regulations vide its Order dated 17.01.2019. To view the Order, Click Here.

Clarification on de- recognition where the Insolvency Professional Entity has not complied with the provisions of regulation 12 of this rule vide Circular No. IPE/008/2018 dated 05.04.2018. To view the Circular, Click Here


2.3.3:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

3. (1) The Board shall, either on its own or through a designated agency, conduct a ‘National Insolvency Examination’ in such a manner and at such frequency, as may be specified, to test the knowledge and practical skills of individuals in the areas of insolvency, bankruptcy and allied subjects.

(2) The Board shall, either on its own or through a designated agency, conduct a ‘Limited Insolvency Examination’ to test the knowledge and application of knowledge of individuals in the areas of insolvency, bankruptcy and allied subjects.

 

(3) 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.

Substituted vide  the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 dated 27.03.2018 effective from 01.04.2018. To view the notification,Click Here

2.3.4:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Eligibility.

4. No individual shall be eligible to be registered as an insolvency professional if he-

(a) is a minor;

(b) is not a person resident in India;

(c) does not have the qualification and experience specified in Regulation 5 or Regulation 9, as the case may be;

(d) has been convicted by any competent court for an offence punishable with imprisonment for a term exceeding six months or for an offence involving moral turpitude, and a period of five years has not elapsed from the date of expiry of the sentence:

Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be registered;

(e) he is an undischarged insolvent, or has applied to be adjudicated as an insolvent;

(f) he has been declared to be of unsound mind; or

(g) he is not a fit and proper person;

Explanation: For determining whether an individual is fit and proper under these Regulations, the Board may take account of any consideration as it deems fit, including but not limited to the following criteria-

(i) integrity, reputation and character,

(ii) absence of convictions and restraint orders, and

(iii) competence, including financial solvency and net worth.


2.3.5:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

 

Subject to the other provisions of these regulations, an individual shall be eligible for registration, if he –

(a) has passed the Limited Insolvency Examination within twelve months before the date of his application for enrolment with the insolvency professional agency;

(b) has completed a pre-registration educational course, from an insolvency professional agency after his enrolment as a professional member; and

(c) has-

(i) successfully completed the National Insolvency Programme, as may be approved by the Board;

(ii) successfully completed the Graduate Insolvency Programme, as may approved by the Board;

(iii) fifteen years’ of experience in management, after receiving a Bachelor’s degree from a university established or recognised by law; or

(iv) ten years’ of experience as –

(a) chartered accountant registered as a member of the Institute of Chartered Accountants of India,

(b) company secretary registered as a member of the Institute of Company Secretaries of India,

(c) cost accountant registered as a member of the Institute of Cost Accountants of India, or

(d) advocate enrolled with the Bar Council.

5. Subject to the other provisions of these Regulations, an individual shall be eligible for registration, if he-

(a) has passed the National Insolvency Examination;

(b) has passed the Limited Insolvency Examination, and has fifteen years of experience in management, after he received a Bachelor’s degree from a university established or recognized by law; or

(c) has passed the Limited Insolvency Examination and has ten years of experience as –

(i) a chartered accountant enrolled as a member of the Institute of Chartered Accountants of India,

(ii) a company secretary enrolled as a member of the Institute of Company Secretaries of India,

(iii) a cost accountant enrolled as a member of the Institute of Cost Accountants of India, or

(iv) an advocate enrolled with a Bar Council.

Substituted vide  the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 dated 27.03.2018 effective from 01.04.2018. To view the notification,Click Here
The details of Pre-registration educational course is provided vide Circular No. IPA/011/2018 dated 23.04.2018. To view the Circular, Click Here

2.3.6:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Application for certificate of registration.

6.(1) An individual enrolled with an insolvency professional agency as a professional member may make an application to the Board in of the Second Schedule to these Regulations, along with a non-refundable application fee of ten thousand rupees to the Board.

(2) The Board shall acknowledge an application made under this Regulation within seven days of its receipt.

(3) The Board may require the applicant to submit, within reasonable time, additional documents, information or clarification that it deems fit.

(4) The Board may require the applicant to appear, within reasonable time, before the Board in person, or through his authorised representative for clarifications required for processing the application.

Form A is substituted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 dated 27.03.2018 effective from 01.04.2018.To view the schedule,Click Here. To view the notification,Click Here

2.3.7:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Certificate of registration.

7. (1) If the Board is satisfied, after such inspection or inquiry as it deems necessary that the applicant is eligible under these Regulations, it may grant a certificate of registration to the applicant to carry on the activities of an insolvency professional in of the Second Schedule to these Regulations, within sixty days of receipt of the application, excluding the time given by the Board for presenting additional documents, information or clarification, or appearing in person, as the case may be.

(2) The registration shall be subject to the conditions that the insolvency professional shall –

(a) at all times abide by the Code, rules, regulations, and guidelines thereunder and the bye-laws of the insolvency professional agency with which he is enrolled;

(b) at all times continue to satisfy the requirements under Regulation 4;

undergo continuing professional education, as may be required by the Board;

not outsource any of his duties and responsibilities under the Code, except those specifically permitted by the Board.

 pay to the Board, a fee of ten thousand rupees, every five years after the year in which the certificate is granted and such fee shall be paid on or before the 30th April of the year it falls due;

Illustration

Where registration is granted on 2nd February, 2018 in the year 2017-18, the fee shall become due on 1st April, 2023, after five years (2018-19, 2019-20, 2020-21, 2021-22 and 2022-23) and it shall be paid on or before the 30th April, 2023.

(ca) pay to the Board, a fee calculated at the rate of 0.25 percent of the professional fee earned for the services rendered by him as an insolvency professional in the preceding financial year, on or before the 30th of April every year, along with a statement in of the Second Schedule;

(c) pay a fee of ten thousand rupees to the Board, every five years after the year in which the certificate is granted;

(d) not render services as an insolvency professional unless he becomes a partner or director of an insolvency professional entity recognised by the Board under Regulation 13, if he is not a citizen of India;

(e) take prior permission of the Board for shifting his professional membership from one insolvency professional agency to another, after receiving no objection from both the concerned insolvency professional agencies;

(f) take adequate steps for redressal of grievances;

(g) maintain records of all assignments undertaken by him under the Code for at least three years from the completion of such assignment;

(h) abide by the Code of Conduct specified in the to these Regulations; and

(i) abide by such other conditions as may be imposed by the Board.

Refer Second Schedule of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. To view the schedule,Click Here
 Inserted vide  the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 dated 27.03.2018 effective from 01.04.2018. To view the notification,Click Here
 Inserted vide  the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 dated 27.03.2018 effective from 01.04.2018. To view the notification,Click Here
Substituted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018. To view the Notification, Click Here

IBBI provides that Form E and form G shall be submitted electronically for FY 2018-19 by every IP / IPE even if he has not earned any professional fee or does not have turnover during 2018-19 dated 12.04.2019. To view the Circular, Click Here.

Inserted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018. To view the Notification, Click Here. To view the Form, Click Here

Schedule is amended vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 dated 27.03.2018 w.e.f. 01.04.2018.To view the schedule,Click Here.To view the Notification,Click Here

2.3.8:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Refusal to grant certificate.

8. (1) If, after considering an application made under Regulation 6, the Board is of the prima facie opinion that the registration ought not be granted, it shall communicate the reasons for forming such an opinion and give the applicant an opportunity to explain why his application should be accepted, within fifteen days of the receipt of the communication from the Board, to enable it to form a final opinion.

(2) The communication under sub-regulation (1) shall be made to the applicant within forty five days of receipt of the application, excluding the time given by the Board for presenting additional documents, information or clarifications, or appearing in person, as the case may be.

(3) After considering the explanation, if any, given by the applicant under sub-regulation (1), the Board shall communicate its decision to-

(a) accept the application, along with the certificate of registration, or

(b) reject the application by an order, giving reasons thereof, within thirty days of receipt of the explanation.


2.3.9:Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Registration for a limited period.

9. (1) Notwithstanding any of the provisions of Regulation 5, an individual shall be eligible to be registered for a limited period as an insolvency professional if he-

(a) has been ‘in practice’ for fifteen years as-

(i) a chartered accountant enrolled as a member of the Institute of Chartered Accountants of India,

(ii) a company secretary enrolled as a member of the Institute of Company Secretaries of India,

(iii) a cost accountant enrolled as a member of the Institute of Cost Accountants of India, or

(iv) an advocate enrolled with a Bar Council; and

(b) submits an application for registration in of the Second Schedule to these Regulations to the insolvency professional agency with which he is enrolled on or before 31st December, 2016 along with a non-refundable application fee of five thousand rupees which shall be collected by such insolvency professional agency on behalf of the Board.

(2) The insolvency professional agency shall submit to the Board the fee collected and the details of the applications received under sub-regulation (1)(b).

(3) An individual referred to sub-regulation (1) shall be registered for a limited period upon submission of the details and fee to the Board under sub-regulation (2), which shall be valid for a period of six months from the date of such submission.

(4) An insolvency professional registered under sub-regulation (3) shall not undertake any assignment as an insolvency professional after the expiry of his registration:

Provided that he may complete the pending assignments undertaken before the expiry of his registration, and his registration shall be deemed to be valid for this limited purpose.

Refer Second Schedule of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.To view the schedule,Click Here

Order in the matter of de-recognition of Insolvency Professional Entities dated 17.01.2019


IBC-Enforcement Notification [S.O.3453(E)] dated 15/11/2016


The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 w.e.f. 01.04.2018


Circular No. IPA/011/2018 dated 23.04.2018 for Pre-registration educational course under regulation 5(b) of the IBBI (Insolvency Professionals) Regulations, 2016


Circular No. IPE/008/2018 dated 05.04.2018


Circular on compliance with regulations 7 (2) (ca) and 13 (2) (ca) of the IBBI (Insolvency Professionals) Regulations, 2016 dated 12.04.2019


IBBI-clarification as to who can render services as an IP dated 15/06/2017


First Schedule-Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.


Second Schedule-Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.


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