The Insolvency and Bankruptcy Board of India (IBBI) has introduced significant amendments to the Model Bye-Laws and Governing Board regulations pertaining to Insolvency Professional Agencies. These amendments, published in the official notification dated September 18, 2023, bring noteworthy changes to the existing regulations.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 18th September, 2023
Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2023
No. IBBI/2023-24/GN/REG105.—In exercise of the powers conferred by sections 196 and 205 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, namely: –
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2023.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (hereinafter referred to as ‘the principal regulations’), in the Schedule ˗˗
(1) In para VI, in clause 10,
(a) for sub-clause (1), the following shall be substituted, namely: –
“(1) An individual or an insolvency professional entity may apply for enrolment as a professional member by submitting an application in Part – I of Form A and Part – I of Form AA, respectively, of the Second Schedule to Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, in such manner and with such fees as may be specified by the Agency.”
(b) in sub-clause (7), after the words “to these bye laws” the words “within sixty days of receipt of the application, excluding the time given for the purposes stated in clause (6)” shall be inserted,
(2) in para XI,
(i) for the clause 29, the following shall be substituted, namely: –
“29. The Agency may refuse to accept the surrender of membership by any professional member if–
(1) there is grievance or disciplinary proceeding pending against it before the Agency or the Board;
(2) it does not comply with requirements, as on the date of application for surrender of professional membership with respect to-
(a) payment of fee to the Board;
(b) a disciplinary order issued by the Agency of the Board;
(c) filings and disclosures to the Agency and the Board;
(d) the arrangements made for the maintenance, preservation and transfer of records and other documents required to be maintained under the relevant regulations; and
(e) any other requirements, as stipulated under the Code, rules made thereunder, regulations, circulars, directions, or guidelines issued by the Agency and the Board, from time to time.
(3) it has been appointed as an interim resolution professional, resolution professional, liquidator or authorised representative or bankruptcy trustee for a process under the Code, or the appointment of another insolvency professional may be detrimental to such process.”
(ii) For clause 30, the following shall be substituted namely:-
“30. (1) A professional member shall be expelled by the Agency –
(a) if it becomes ineligible to be enrolled under clause 9;
(b) on expiry of thirty days from the order of the Disciplinary Committee, unless set aside or stayed by the Appellate Panel;
(c) upon non-payment of professional membership fee despite at least two notices served in writing;
(d) upon the cancellation of its certificate of registration by the Board;
(e) upon the order of any court of law.
(2) While expelling the professional member, the Agency may take into account the factors provided in clause 29.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./426/2023-24]
Note : The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG001 dated 21st November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 421 on 22nd November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Second Amendment) Regulations, 2022 published vide notification No. IBBI/2022- 23/GN/REG101 dated 31st October 2022, in the Gazette of India, Extraordinary, Part III, Section 4, No. 535 on 31st October 2022.
