Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2020 dated 30 June 2020
By EDITORIAL TEAM INSOL India Posted On : July 26, 2020
This amendment substituted the erstwhile Regulation 12(1)(a) ofthe Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, with the following clause, namely:
“(a) its sole objective is to provide support services to insolvency professionals;”
The earlier regulation 12(1)(a) stated as follows:
“its sole objective is to provide support services to insolvency professionals, who are its partners or directors, as the case may be;”.
By virtue of this amendment,the services of an Insolvency Professional Entity(IPE) are no longer limited to the provision of support services only to those insolvency professionals who are its partners or directors. Companies, registered partnership firms or limited liability partnerships are now eligible for recognition as an insolvency professional entity if their sole objective is to provide support services to insolvency professionals.