IBBI (Insolvency Professionals) (Amendment) Regulations, 2019

Jul 24, 2019 | by Avantis RegTech Legal Research Team

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The Insolvency and Bankruptcy Board of India (IBBI) on July 23, 2019, has published the IBBI (Insolvency Professionals) (Amendment) Regulations, 2019, to further amend the IBBI (Insolvency Professionals) Regulations, 2016. It will come into force on the date of its publication in the Official Gazette.

The amendments effected by IBBI (Insolvency Professionals) (Amendment) Regulations, 2019 are:

(a) An insolvency professional shall not accept or undertake any assignment as interim resolution professional, resolution professional, liquidator, bankruptcy trustee, authorised representative or in any other role under the Insolvency and Bankruptcy Code, 2016 unless he holds an ‘Authorisation for Assignment’ issued by his Insolvency Professional Agency. This is effective from January 01, 2020. 

(b) An insolvency professional must disclose the details of any conflict of interests to the stakeholders, whenever he comes across such conflict of interest during an assignment.

(c) An insolvency professional shall not engage in any employment when he holds a valid Authorisation for Assignment or when he is undertaking an assignment. This would enable an individual to seek registration as insolvency professional even when he is in employment.

(d) Where an insolvency professional has conducted a corporate insolvency resolution process, he and his relatives shall not accept any employment, other than an employment secured through open competitive recruitment, with, or render professional services, other than services under the Code to a creditor having more than ten percent voting power, the successful resolution applicant, the corporate debtor or any of their related parties, until a period of one year has elapsed from the date of his cessation from such process. 

(e) An insolvency professional shall not engage or appoint any of his relatives or related parties, for or in connection with any work relating to any of his assignment.

(f) An insolvency professional shall not provide any service for or in connection with the assignment which is being undertaken by any of his relatives or related parties.

[Notification No. IBBI/2019-20/GN/REG045]


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