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

13. (1)Substituted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021 dated 22.07.2021. To view the notification, Click Here (a) Where the Board, after consideration of the application under sub-regulation (4) of regulation 12,-

(i) is satisfied that the applicant is eligible under these Regulations, it may grant a certificate of recognition as an insolvency professional entity within sixty days of receipt of the application, excluding the time taken by the applicant for submitting additional documents, information or clarification, or appearing in person, as the case may be, under sub-regulation (4) of regulation 12;

(ii) is of the prima facie opinion that the recognition ought not be granted, it shall communicate such opinion along with reasons thereof and provide the applicant an opportunity to submit its explanation within fifteen days of the receipt of the communication from the Board, to enable it to form a final opinion.

(b) The Board shall, within thirty days of receipt of the explanation, if any, submitted by the applicant under clause (a), –

(i) grant a certificate of recognition as an insolvency professional entity; or

(ii) reject the application by an order, after recording reasons thereof.

(c)The Board shall grant a certificate of recognition as an insolvency professional entity under clause (a) or (b) in Form D of the Second Schedule

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

(b)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 inform the Board, within thirtySubstituted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021 dated 22.07.2021. To view the notification, Click Hereseven days, when an individual ceases to be its director or partner, as the case may be, in Form FInserted vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 dated 11.10.2018.

Substituted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2019 dated 25.10.2019.To view the Notification, Click Here. To view the Form, Click Here To view the substituted form Click Here of the Second Schedule along with a fee of two thousand rupees;

Provided thatInserted vide IBBI (Insolvency Professionals) (Amendment) Regulations, 2020 dated 28.03.2020. To view the notification, Click Here. when an individual ceases to be its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on the 31st December 2020, the insolvency professional entity shall inform the Board, within thirty days of such cessation.

Provided further thatInserted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals)(Amendment) Regulations, 2021 notification dated 27.04.2021. To view the notification,Click Here  when an individual ceases to be its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021 and ending on the 31st December 2021, the insolvency professional entity shall inform the Board, within thirty days of such cessation;

Provided further thatInserted vide Notification dated 28.09.2022 regarding Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Fourth Amendment) Regulations, 2022. To view the Notification, Click Here. 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.

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

(c)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 inform the Board, within Substituted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021 dated 22.07.2021. To view the notification, Click Here 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;

Provided thatInserted vide IBBI (Insolvency Professionals) (Amendment) Regulations, 2020 dated 28.03.2020. To view the notification, Click Here. when an individual joins as its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on the 31st December 2020, the insolvency professional entity shall inform the Board, within thirty days of such joining.

Provided further thatInserted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals)(Amendment) Regulations, 2021 notification dated 27.04.2021. To view the notification, Click Here when an individual joins as its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021 and ending on the 31st December 2021, the insolvency professional entity shall inform the Board, within thirty days of such joining;

Provided further thatInserted vide Notification dated 28.09.2022 regarding Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Fourth Amendment) Regulations, 2022. To view the Notification, Click Here. 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.

(ca) pay to the Board, a fee calculated at the rate of one per centSubstituted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals)(Third Amendment) Regulations, 2022 dated 20.09.2022. To view the notification,Click Here 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 Form GSubstituted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals)(Third Amendment) Regulations, 2022 dated 20.09.2022. To view the notification,Click Here. To view the form, 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 of the Second Schedule; and Second Schedule:Substituted vide IBBI (Insolvency Professionals) (Amendment) Regulations, 2020 dated 28.03.2020. To view the notification, Click Here.

Provided that for the financial year 2019-2020, an insolvency professional entity shall pay the fee under this clause on or before the 30th June, 2020; andSubstituted vide IBBI (Insolvency Professionals) (Amendment) Regulations, 2020 dated 28.03.2020. To view the notification, Click Here.

Provided further thatInserted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals)(Amendment) Regulations, 2021 notification dated 27.04.2021. To view the notification,Click Here for the financial year 2020-2021, an insolvency professional entity shall pay the fee under
this clause on or before the 30th June, 2021; and

Provided further thatInserted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Third Amendment) Regulations, 2022 dated 20.09.2022. To view the notification, Click Here Provided further that in case the insolvency professional entity is registered as an insolvency professional, the services for the purpose of this sub-regulation shall not include the services rendered as an insolvency professional provided under third proviso to clause (ca) of sub-regulation (2) of regulation 7.

(cb)Inserted vide Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2019 dated 25.10.2019. To view the notification,Click Here submit to the Board, by 15th day of October every year, a compliance certificate in Form H.Refer form H of second schedule of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. To view the schedule,Click Here, for the preceding financial year:

Provided that an insolvency professional entity recognised as on 31st March, 2019 shall submit to the Board, by 31st December 2019, a compliance certificate in Form H for the financial year 2018-19.

(c)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 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.