Grant of certificate of registration.
5. (1) If the Board is satisfied, after such inspection or inquiry as it deems necessary and having regard to the principles specified in section 200 of the Code, that the applicant:—
(a) is eligible under Regulation 3;
(b) has adequate infrastructure to perform its functions under the Code;
(c) has in its employment, persons having adequate professional and other relevant experience, to enable it to perform its functions under the Code; and
(d) has complied with the conditions of the certificate of registration, if he has submitted an application for renewal under Regulation 4(2) it may grant or renew a certificate of registration to the applicant to carry on the activities of an insolvency professional agency in of the Schedule to these Regulations, within sixty days of receipt of the application, excluding the time given by the Board for removing the deficiencies, or 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 agency shall –
(a) abide by the Code, rules, regulations, and guidelines thereunder and its bye-laws;
(b) at all times after the grant of the certificate continue to satisfy the requirements under sub-regulation (1);
pay an annual fee of five lakh rupees to the Board, within fifteen days from the date of commencement of the financial year:
Provided that no annual fee shall be payable in the financial year in which an insolvency professional agency is granted registration or renewal, as the case may be:
Provided further that without prejudice to any other action which the Board may take as permissible under the Code, any delay in payment of fee by an insolvency professional agency shall attract simple interest at the rate of twelve percent per annum until paid.
Illustration
(a) Where an insolvency professional agency is registered on 1st December, 2016 upon receipt of an application fee of ten lakh rupees along with the application for registration, no further fee is required to be paid for the financial year 2016-17. The annual fee of five lakh rupees becomes due on 1st April, 2017 and shall be paid by 15th April, 2017 for the financial year 2017-18. It becomes similarly due on 1st April, 2018 to be paid by 15th April, 2018, on 1st April, 2019 to be paid by 15th April, 2019, on 1st April, 2020 to be paid by 15th April, 2020 and on 1st April, 2021 to be paid by 15th April, 2021. Thereafter, the insolvency professional agency may apply for renewal of registration along with an application fee of five lakh rupees. If renewal is granted, there will be no annual fee for 2021-22.
(b) Where the annual fee is paid on 20th April, 2017, interest at the rate of twelve percent per annum shall be paid for the delay of five days.
(c) pay a fee of five lakh rupees to the Board, payable every year after the year in which the certificate is granted or renewed;
(d) seek approval of the Board when a person, other than a statutory body, seeks to hold more than ten per cent, directly or indirectly, of the share capital of the insolvency professional agency;
(e) take adequate steps for redressal of grievances; and
(f) abide by such other conditions as may be specified.
(3) The certificate of registration shall be valid for a period of five years from the date of issue.