Compliance of Regulation 13(2) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016

Sep 03, 2018 | by Avantis RegTech Legal Research Team

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An Insolvency Professional Entity (IPE) is recognised by the Insolvency and Bankruptcy Board of India (IBBI) under Chapter V of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, subject to conditions specified under Regulation 13(2), which reads as under:

“(2) The recognition shall be subject to the conditions that the insolvency professional entity shall-

(a)    at all times continue to satisfy the requirements under Regulation 12;

(b)   inform the Board, within seven days, when an insolvency professional ceases to be its director or partner, as the case may be;

(c)    inform the Board, within seven days, when an insolvency professional joins as its director or partner, as the case may be; and

(d)   abide by such other conditions as may be specified.”.

In view of the above, it is directed that an IPE shall inform the IBBI: -

(a)    within seven days from the date when an insolvency professional ceases to be its director or partner or joins as its partner or director; and

(b)   forthwith and in any case, not later than September 07, 2018, if it has failed to inform any cessation or joining of an insolvency professional as its partner or director in the past.

The information, as required above, shall be provided by the authorised signatory of the IPE in the format provided in the Annexure by an email from the email address of the IPE registered with the IBBI to [email protected].  

Failure to comply with the said requirement shall invite appropriate action, including withdrawal of recognition granted to an IPE.

[CIRCULAR No. IBBI/IPE/017/2018]

URL: http://ibbi.gov.in/webadmin/pdf/whatsnew/2018/Aug/Circular-IPEdated%2031st%20August%202018_2018-08-31%2018:11:35.pdf


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