Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018

Oct 15, 2018 | by Avantis RegTech Legal Research Team

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The Insolvency and Bankruptcy Board of India (IBBI) on October 11, 2018 has published Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 to further amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

The amendments made in the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 are as under:

·      In regulation 7 which specifies the conditions to be followed by the applicant for obtaining certificate of registration, in sub-regulation (2), for clause (c), the following clauses shall be substituted, namely: -

                                             i.            “(c) pay to the Board, a fee of ten thousand rupees, every five years after the year in which the certificate is granted and such fee shall be paid on or before the 30th April of the year it falls due; Illustration Where registration is granted on 2nd February, 2018 in the year 2017-18, the fee shall become due on 1st April, 2023, after five years (2018-19, 2019-20, 2020-21, 2021-22 and 2022-23) and it shall be paid on or before the 30th April, 2023. 

                                           ii.            (ca) pay to the Board, a fee calculated at the rate of 0.25 percent of the professional fee earned for the services rendered by him as an insolvency professional in the preceding financial year, on or before the 30th of April every year, along with a statement in Form E of the Second Schedule;”;

·     In regulation 12 and 13 which specifies the conditions to be followed by the A company, a registered partnership firm or a limited liability partnership so that they can be recognised as an insolvency professional entity:

                                              i.            In regulation 12, for sub-regulation (2), the following sub-regulation shall be substituted, namely:

“A person eligible under sub-regulation (1) may make an application for recognition as an insolvency professional entity to the Board in Form C of the Second Schedule along with an application fee of fifty thousand rupees.”.

                                           ii.            In regulation 13, in sub-regulation (2), for clauses (b) and (c), the following clauses shall be substituted, namely: - 

“(b) inform the Board, within seven days, when an individual ceases to be its director or partner, as the case may be, in Form F of the Second Schedule along with a fee of two thousand rupees; 

(c) inform the Board, within seven days, when an individual joins as its director or partner, as the case may be, in Form F of the Second Schedule along with a fee of two thousand rupees; 

 (ca) pay to the Board, a fee calculated at the rate of 0.25 percent of the turnover from the services rendered by it in the preceding financial year, on or before the 30th of April every year, along with a statement in Form G of the Second Schedule; and”.

·         After regulation 14, the following regulation shall be inserted, namely:

“15. Interest: Without prejudice to any other action which the Board may take as deemed fit under the Code or any regulations made thereunder, any delay in payment of fee by an insolvency professional or an insolvency professional entity, a simple interest at the rate of 12% per annum on the amount of fee unpaid shall be paid to the Board after the last date of payment of fee under these regulations.”.

·         In the Second Schedule, after Form D, the following Forms shall be inserted, namely:

i.                FORM E: Annual statement of professional fee of insolvency professional.

ii.       FORM F: Information of cessation/joining of a Director / Partner in an insolvency professional entity.

iii.             FORM G: Annual statement of turnover of insolvency professional entity.

The Regulations shall come into force on the date of publication in the Official Gazette.

[IBBI/2018-19/GN/REG036]

 

URL: http://ibbi.gov.in/webadmin/pdf/whatsnew/2018/Oct/IP%20Reg%20Amendment%2011-10-18%20at%2011.00AM_2018-10-11%2020:43:13.pdf


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