IBBI issues standard and uniform limits for monetary penalties to be imposed by an Insolvency Professional Agencies
The circular intends to ensure that the IP agencies will have the flexibility to impose a graduated system of penalties, where minor non-compliances will result in monetary fines, and major violations will result in expulsion from the agency.
The Insolvency and Bankruptcy Code (Amendment) Bill, 2021
The amendment seeks to replace the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 promulgated on the 4th day of April, 2021 which laid down the procedure for pre-packaged insolvency resolution process.
IBBI amends the guidelines on Technical Standards for the performance of core services and other services under the Insolvency and Bankruptcy Board of India regulation.
The amendment defines the term “Identity Details” which means C-KYC number in the C-KYC database maintained by CERSAI or identification number of any OVD of a person who is a resident of India.
The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021.
The Amendment modifies the qualification and experience of the insolvency professional.
IBBI has specified the format of CIRP 8 under IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
The Resolution Professional is duty-bound to find out if a corporate debtor has been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications with the Adjudicating Authority seeking appropriate relief.
Information Brochure for Pre-Packaged Insolvency Resolution Process
The PPIRP is required to be completed within a period of 120 days from its commencement date. The RP shall either file the resolution plan for approval or an application for termination of PPIRP, with the AA within 90 days from the PPIRP commencement date. A model timeline along-with the activities to be undertaken and responsibilities of Resolution Professionals, creditors and corporate debtor is provided in the brochure.
BSE Guidance note for companies undergoing Corporate Insolvency Resolution Process
CIRP Resolution Professional shall inform through the Exchange platform any impact on the existing holders / investors of listed securities on areas such as status of listing, the value of holding of existing holders, write off/ cancellation/ extinguishment of existing equity shares/ preference shares/ debentures, etc. without any payment to such holders, where applicable.
Guidelines for Technical Standards for the Performance of Core Services and Other Services under the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017
The Insolvency and Bankruptcy Board of India has issued Guidelines for Technical Standards for the Performance of Core Services and Other Services under the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017. An Information Utility shall follow the guidelines for Registration, Identification and Verification of Users.
IBBI publishes provisional list of IPs
The Insolvency and Bankruptcy Board of India has issued the provisional list of IPs prepared in accordance with ‘Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2021. This list shall be in effect during the period between July 1, 2021 – December 31, 2021. Any discrepancy, as may be observed, in this provisional list may be mailed only at ra.irp@ibbi.gov.in by 6.00 pm of June 28, 2021.
IBBI invites comments from the public on the regulations
IBBI has invited comments from the public, including the stakeholders on the regulations already notified under the Code till date. The comments received between 17th June, 2021 and 31st December, 2021 shall be processed together and following the due process, regulations will be modified to the extent considered necessary. It will be the endeavor of the IBBI
to notify modified regulations by 31st March, 2022 and bring them into force on 1st April, 2022.
