The Insolvency and Bankruptcy Board of India on 22nd July 2021 has published the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021 which shall be effective from 22nd July 2021.
The Amendment modifies the qualification and experience of the insolvency professional as follows:
An individual shall be eligible for registration, if he has ten years experience s in the field of law, after receiving a Bachelor‟s degree in law or ten years in management, after receiving a Master‟s degree in Management or two-year full-time Post-Graduate Diploma in Management; or fifteen years in management, after receiving a Bachelor‟s degree.
Further under regulation 12, A company, a registered partnership firm or a limited liability partnership may be recognized as an insolvency professional entity, it has a net worth of not less than one crore rupees, and the majority of its shares is held by insolvency professionals, who are its directors, in case it is a company.
Provided that the insolvency professional entities recognized before the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021 shall comply with the above provision on or before 31st December 2021.
Further, the Board shall acknowledge an application made under this regulation within seven days of its receipt.
