The IBBI on March 28, 2018 notified the Insolvency and Bankruptcy Board of India Amendment Regulations, 2018; Subject to meeting other requirements, an individual shall be eligible for registration as insolvency professional if he has passed the Limited Insolvency Examination within the last 12 months and has completed a pre-registration educational course from an insolvency professional agency, as may be required by the Board.
An individual with the required experience of 10/15 years is eligible for registration as insolvency professional. In assition, an individual with little or no experience shall be eligible for registration as insolvency professional on successfully completing the Graduate Insolvency Programme, as may6 be aproved by the IBBI.
A company, a registered partnership firm or a limited liability partnership shall be eligible for recognition as an insolvency professional entity, if its sole objective is to provide support services to insolvency professionals, who are its partners or directors, as the case may be, Its networth should be not less than one crore rupees.
An insolvency professional shall disclose the fee payable to him, the fee payable to the insolvency professional entity, and the fee payable to professionals engaged by him to the insolvenct professional agency of which he is a professional member and the agency shall publish such disclosure on its website.
IBBI signs MoU with RBI
The Insolvency and Bankruptcy Board of India on March, 2018. signed a MoU with the RBI. It was signed on the side-lines of the 4th meeting of the Insolvency Law Committee in New Delhi.
The Insolvency and Bankruptcy Code, 2016 Provides for reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote enterpreneurship, availability of credit and balance the interensts of all the stakeholders and , for this purpose, has established an institutional infrastructure comprisin of Adjudicating Authorities, the IBBI, insolvency professionals, Insolvency professsional agencies and information utilities.
The IBBI exercises regulatory oversight over the Insolvency Professionals, Insolvency Professional agencies and Information Utilities. It writes and enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under the Code.
As per the MoU, the RBI and the IBBI will cooperate for effective implementation of the Bankruptcy Code. This includes sharing of information, periodic meetins to discuss matters of mutual interest and capacity building of insolvency professionals and financial creditors.
