The Insolvency and Bankruptcy Board of India on 4th July 2022, has published the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2022 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
The Amendment is brought under first schedule which deals with the code of conduct for insolvency professionals in which the following clauses has been notified:
As per clause 8B, an insolvency professional shall disclose his relationship, if any, with the corporate debtor, other professionals engaged by him, financial creditors, interim finance providers, and prospective resolution applicants to the insolvency professional agency of which he is a member.
As per clause 15A, an insolvency professional shall prominently state in all his communications to a stakeholder, his name, address, e-mail, registration number and validity of authorisation for assignment, if any, issued by the insolvency professional agency of which he is a member.
Under clause 25B, an insolvency professional shall raise bills or invoices in his name towards his fees, and such fees shall be paid to him through banking channel.
Further under clause 27A, an insolvency professional shall, while undertaking assignment or conducting processes, exercise reasonable care and diligence and take all necessary steps to ensure that the corporate person complies with the applicable laws.
