The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2020
A limited liability partnership, a registered partnership firm or a company may be recognized as an insolvency professional entity if “its sole objective is to provide support services to insolvency professionals”.
IBC (Amendment) Ordinance 2020 Suspends bankruptcy proceedings for further 6 months
The Central Government vide ordinance promulgated on 5th June 2020 has amended the Insolvency & bankruptcy Code, 2016 which has effectively suspended fresh bankruptcy proceedings against persons impacted by COVID-19 for at least six months, up to a maximum of one year. The new rules shall come into effect immediately.
Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2020
The Board will prepare a common Panel of IPs for appointment as IRP, Liquidator, RP and BT and share the same with the AA (Hon’ble NCLT and Hon’ble DRT) in accordance with these Guidelines.
IBBI clarifies role of Liquidator in Avoidance Transactions
The Insolvency and Bankruptcy Board of India vide Circular dated 8th May, 2020 has clarified the Role of Resolution Professional/Liquidator in respect of Avoidance Transactions.
IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020
An application received on and from 28th March 2020 and ending on the 30th September 2020, if the authorization for assignment is not issued, renewed or rejected by the Agency within thirty days of the date of receipt of application, the authorization shall be deemed issued or renewed, as the case may be, by the Agency.
RBI Extends Resolution timelines on stressed assets under the prudential framework
Lenders are required to implement a resolution plan in respect of entities in default within 180 days from the end of Review Period of 30 days. However RBI has decided that in respect of accounts which were within the Review Period as on March 1, 2020, the period from March 1, 2020 to May 31, 2020 shall be excluded from the calculation of the 30-day timeline.
CBIC has issued clarification for companies to comply with GST laws under Insolvency and Bankruptcy code, 2016
The Central Board of Indirect Taxes and Customs in its notification dated 23rd March 2020, has issued clarification on issues being faced by entities covered under Insolvency and Bankruptcy Code, 2016 regarding registration, returns, refund etc. under CGST Act.
Lock down period to be excluded from the timeline for insolvency resolution process
The IBBI through amendment states that the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the timeline for any activity that could not be completed in due time due to the lockdown, in relation to a corporate insolvency resolution process.
Finance Minister announces COVID -19 Compliance reliefs
The Finance Minister on 24th March 2020 has announced several reliefs for easing the burden on the citizens of India for complying with the requirement of Income-tax Act, Companies Act, Goods and Service tax laws etc. The Finance Minister clarified that no financial emergency will be declared. The finance ministry is already working an economic package to mitigate the impact of coronavirus on the Indian economy.
Ministry of Finance Notifies rules for Banning of unregulated Deposit scheme.
The Ministry of Finance vide notification dated 12th February 2020, has published the Banning of Unregulated Deposit Schemes Rules, 2020 which provides for a comprehensive mechanism to tackle illicit deposit taking activities and various provisions related to information and particulars to be considered, manner of provisional attachment and administration of provisionally attached property.
