In exercise of the powers conferred by section 240 read with section 194 of the Insolvency and Bankruptcy Code

## Report on the Insolvency and Bankruptcy Board of India Engagement of Research Associates and Consultants Amendment Regulations, 2022 **1. Executive Summary:** This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Engagement of Research Associates and Consultants Amendment Regulations, 2022. This amendment modifies the 2017 regulations concerning the engagement of Research Associates and Consultants by the IBBI. Key changes include granting the Chairperson the power to amend consolidated remuneration, modifying the standard engagement period, and revising the remuneration schedule based on experience levels. The amendment aims to provide flexibility in remuneration and engagement duration, potentially attracting and retaining qualified personnel. **2. Introduction:** This report aims to provide a comprehensive overview of the Insolvency and Bankruptcy Board of India Engagement of Research Associates and Consultants Amendment Regulations, 2022 (hereinafter referred to as "the Amendment"), based solely on the information provided in the official notification. It outlines the key changes introduced, their potential impact, and relevant implementation aspects. **3. Policy Overview:** This document amends the *Insolvency and Bankruptcy Board of India Engagement of Research Associates and Consultants Regulations, 2017*. * **Core Objective(s):** Based on the text, the core objective of this amendment is to revise and provide more flexibility concerning the terms of engagement of Research Associates and Consultants within the IBBI, specifically regarding remuneration and duration of employment. **4. Background and Rationale:** The Amendment likely addresses the need for the IBBI to have greater flexibility in determining the remuneration of Research Associates and Consultants, as well as to allow for longer engagement periods. The original regulations may have been too rigid, hindering the IBBI's ability to attract and retain qualified individuals. The amendment addresses potential constraints by enabling the Chairperson to adjust remuneration based on specific reasons and extending the maximum engagement period. **5. Key Provisions / Changes:** The Amendment introduces the following changes to the original 2017 regulations: * **Amendment to Regulation 5 (Remuneration):** A proviso is inserted after sub-regulation 3, granting the Chairperson the power to amend the consolidated remuneration outlined in Schedule II, provided the reasons are recorded in writing. * **Effect:** This change introduces flexibility in determining remuneration, allowing the Chairperson to adjust compensation based on factors not explicitly addressed in the original regulations. This allows the IBBI to be more responsive to market conditions and specific candidate qualifications. * **Amendment to Regulation 8 (Engagement Period):** Sub-regulation 1, which presumably concerned the engagement period, is substituted with a new sub-regulation. This new sub-regulation stipulates that selected candidates will ordinarily be engaged for a period of one to three years on a contractual basis. The Chairperson is granted the power to extend the term of engagement one year at a time, up to a maximum of five years. * **Effect:** The amendment provides clarity on the typical engagement duration (1-3 years) while introducing the possibility of extending the engagement by up to two additional years, subject to the Chairperson's approval. This provides more flexibility in retaining valued staff. * **Substitution of Schedule II (Remuneration Schedule):** Schedule II is replaced entirely with an updated remuneration schedule. The new schedule specifies consolidated monthly remuneration based on experience level and designates positions as either "Research Associate" or "Consultant," each with multiple levels. It also specifies an annual increase of 10%. | Level | Position | Experience | Remuneration (Rs.) | |-------|--------------------|-----------------------|--------------------| | I | Research Associate | Up to three years | 60,000 | | II | Research Associate | Minimum three years | 80,000 | | III | Research Associate | Minimum five years | 1,05,000 | | IV | Consultant | Minimum ten years | 1,30,000 | | V | Consultant | Minimum fifteen years | 1,55,000 | * **Effect:** This change revises the remuneration structure. The text suggests a clearer progression based on experience and position (Research Associate vs. Consultant). The inclusion of a 10% annual increase provides an incentive for long-term engagement. **6. Target Audience and Stakeholders:** Based on the provided text, the target audience and stakeholders directly affected by these changes are: * Current and prospective Research Associates and Consultants of the IBBI. * The Chairperson of the IBBI, who is granted additional authority in remuneration and engagement extensions. * The IBBI's administrative and human resources departments, responsible for implementing the amended regulations. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Insolvency and Bankruptcy Board of India (IBBI) is the responsible body. The Chairperson of the IBBI plays a crucial role in approving remuneration adjustments and engagement extensions. * **Timelines or procedures:** The Amendment came into force on the date of its publication in the Official Gazette (June 1, 2022). Implementation requires the IBBI to update its internal procedures related to hiring and remuneration. All engagement contracts after this date should reflect the amended terms. The Chairperson should establish procedures for recording reasons for amending remuneration. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these amendments are: * **Increased flexibility:** The IBBI gains more flexibility in attracting and retaining qualified Research Associates and Consultants. * **Improved talent acquisition:** The revised remuneration schedule, with its defined levels and annual increases, could make the positions more attractive to potential candidates. * **Enhanced retention:** The possibility of extending engagements and the provision for annual salary increases may incentivize existing personnel to remain with the IBBI. * **Greater responsiveness:** The Chairperson's ability to adjust remuneration allows the IBBI to respond more effectively to market conditions and individual candidate qualifications. **9. Conclusion:** The Insolvency and Bankruptcy Board of India Engagement of Research Associates and Consultants Amendment Regulations, 2022 introduces significant changes to the regulations governing the engagement of research staff and consultants. These changes aim to provide greater flexibility and enhance the IBBI's ability to attract, compensate, and retain qualified personnel. The amendments are significant because they could affect the quality of research and advice available to the IBBI, and consequently, the effectiveness of the insolvency and bankruptcy framework in India.

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