The Insolvency and Bankruptcy Board of India clarifies the procedure for temporary surrender and revival of professional membership of an insolvency professional
By INSOL India Editorial Team Posted On : July 15, 2019
The IBBI, vide its circular dated May 02, 2019, has clarified the procedure for temporary surrender and revival of professional membership of an insolvency professional (“IP”). IPs have the right to temporarily surrender their professional memberships in accordance with the provisions of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
The IBBI has identified certain cases in which insolvency professional agencies shall not ordinarily accept temporary surrender by IPs, which are as follows –
(a) An IP is acting as an authorised representative of any class of financial creditors;
(b) An IP is conducting a process under the Insolvency and Bankruptcy Code, 2016; and
(c) An IP in included in a panel under the Insolvency Professionals to act as Interim Resolution Professionals or Liquidators (Recommendation) Guidelines, 2018, ‘the Guidelines for Appointment of Insolvency Professionals as Administrators under the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018, ‘the Guidelines for Appointment of Insolvency Professionals as Administrators the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018 and/or any similar guidelines.
The IBBI has also prescribed certain forms which may be used to process temporary surrender and revival of professional membership of IPs.
IBBI Initiatives
(i) Workshop on “Committee of Creditors: An Institution of Public Trust”
The Insolvency & Bankruptcy Board of India in association with Indian Bank organized a Workshop on “Committee of Creditors: An Institution of Public Trust” on June 29, 2019 at Indian Bank Management Academy for Growth & Excellence (IMAGE), MRC Nagar, Raja Annamalaipuram, Chennai-600028.
(ii) Insolvency and Bankruptcy Board of India Research Initiative, 2019
To promote research - legal, economic and interdisciplinary - and discourse in areas relevant for the evolving insolvency and bankruptcy regime in general, and in India, IBBI has announced launching of Insolvency and Bankruptcy Board of India Research Initiative, 2019. Researchers are invited to submit research proposals from 1st August, 2019 in accordance with the Initiative which will be reviewed by the Board and an external referee. If the proposal is accepted by the Board then the researcher will have six months to submit the research paper.
(iii) IBBI invites comments on Insolvency Professional Regulations, IPA Regulations, IU Regulations and CIRP Regulations
Pursuant to the Insolvency and Bankruptcy Board of India (Mechanism for Issuing Regulations) Regulations, 2018, IBBI has issued discussion papers in relation to the Insolvency Professional Regulations, IPA Regulations, IU Regulations and CIRP Regulation, highlighting issues which necessitate certain amendments to the above mentioned existing regulations. IBBI has invited public comments on the points and related regulations highlighted in the discussion paper(s) and also comments on other aspects of these regulations which the stakeholder would like to provide.
(iv) Data on corporate insolvency resolution process yielding resolution and CIRP’s ending into liquidation
IBBI is diligently carrying out the task of collating information on the progress of implementation of the Code. To disseminate such information, IBBI releases status of CIRP’s yielding resolution and those which have ended into liquidation. This information serves as a useful reference point to asses and track the progress of the Code. IBBI has released this data for the quarter ending March 31, 2019.
For more details please visit https://ibbi.gov.in/webadmin/pdf/whatsnew/2019/May/IBBI