Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020

Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020
Who is an insolvency professional (IP)?
Ans. As per the Insolvency and Bankruptcy Code, 2016 (the Code), insolvency professional (IP) means an eligible person:

a. enrolled with an insolvency professional agency (IPA) as its member and,
b. registered with Insolvency and Bankruptcy Board of India (the Board) as an insolvency professional (IP).

What is the process to become an IP?
Ans. Following are the (mandatory) stages to be followed to become an IP:

A. For Professionals (Chartered Accountant, Company Secretary, Cost Accountant or an Advocate) having 10 years of experience, or graduates having 15 years of managerial experience:

Stage 1: Pass the limited insolvency examination
Stage-2: Enrol as a professional member with an insolvency professional agency (IPA), within a period of 12 months of clearing the Limited Insolvency Examination
Stage-3: Complete a pre-registration educational course by the IPA.
Stage-4: Apply to the Board for registration as an ‘insolvency professional’ (IP)

B. For Young Professionals, having less than 10 years of experience or no experience:

Stage 1: Complete the Graduate Insolvency Programme (GIP)
Stage 2: Pass the limited insolvency examination
Stage-3: Enrol as a professional member with an insolvency professional agency (IPA), within a period of 12 months of clearing the Limited Insolvency Examination
Stage-4: Complete a pre-registration educational course by the IPA.
Stage-5: Apply to the Board for registration as ‘insolvency professional’ (IP) C. The National Insolvency Programme will be notified by the Board in due time

Ministry amends Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 vide 

Regulation No. IBBI/2020-21/GN/REG057

Dated: 20th April, 2020

Section: - 196, 207 and 208 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)

Came into force: 28th March, 2020.

Crux:

1. Section: regulation 7, in sub-regulation (2), in clause (ca)

Amended: Provided that for the financial year 2019-2020, an insolvency professional shall pay the fee under this clause on or before the 30th June, 2020.

2. Regulation: regulation 13, in sub-regulation (2), - (i) in clause (b)

Amended: (i) Provided that when an individual ceases to be its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on the 31st December 2020, the insolvency professional entity shall inform the Board, within thirty days of such cessation;”;

(ii) in clause (c), the following shall be inserted, namely: - “Provided that when an individual joins as its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on the 31st December 2020, the insolvency professional entity shall inform the Board, within thirty days of such joining;”;

3. Clause: clause (ca),

For “Second Schedule; and”, occurring at the end,

Amended: “Second Schedule: “Provided that for the financial year 2019-2020, an insolvency professional entity shall pay the fee under this clause on or before the 30th June, 2020; and”

Link: https://ibbi.gov.in/uploads/legalframwork/ac467ecac3ad7a0f66433d3cbedfa03d.pdf

DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.

THE AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.