Home India Insolvency and Bankruptcy Board of India In exercise of the powers conferred by sections 196, 203 and...
Date: 2022-10-03 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sections 196, 203 and 205 read with section 240 of the Insolvency and Bankruptcy Code,

Issued by Insolvency and Bankruptcy Board of India · Not Applicable

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## Report on the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Amendment Regulations, 2022 **1. Executive Summary:** This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Model Bye-Laws and Governing Board of Insolvency Professional Agencies Amendment Regulations, 2022. This amendment modifies the 2016 regulations to include insolvency professional entities recognized by the Board and aims to refine the enrollment and registration process of insolvency professionals, ensuring alignment with existing regulations. The key changes address the eligibility of insolvency professional entities as members and require the provision of partner/director details. This report provides an overview of the amendment, its rationale, key changes, affected stakeholders, implementation aspects, and expected outcomes. **2. Introduction:** The purpose of this report is to provide an informative analysis of the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Amendment Regulations, 2022, based solely on the provided policy text. This report aims to clarify the changes introduced by this amendment and their potential impact on the insolvency professional landscape. **3. Policy Overview:** * **Amendment to:** Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations, 2016. * **Core Objective(s):** To update the existing regulations regarding the eligibility, enrollment, and registration of insolvency professional entities (IPEs) as members of Insolvency Professional Agencies (IPAs) to maintain alignment with the Insolvency and Bankruptcy Code, 2016 and related regulations. **4. Background and Rationale:** The amendment seems designed to address the integration of Insolvency Professional Entities (IPEs) within the existing framework governing Insolvency Professional Agencies (IPAs). The changes suggest a need to clarify and formalize the role and requirements for IPEs seeking membership within IPAs, ensuring that only those eligible to be registered as insolvency professionals with the Board are enrolled as professional members of the IPA. This amendment may have been prompted by the evolving structure of the insolvency professional ecosystem and the increasing prominence of IPEs. **5. Key Provisions / Changes:** This section details the specific changes introduced by the amendment: * **Clause 9 (Enrollment as Professional Member):** * **Change:** Adds a new subclause (2) to clause 9. * **New Rule:** "No insolvency professional entity, recognised by the Board under regulation 13 of the Insolvency and Bankruptcy Board of India Insolvency Professionals Regulations, 2016, shall be enrolled as a professional member if it is not eligible to be registered as an insolvency professional with the Board." * **Effect:** This ensures that IPEs seeking membership in an IPA meet the baseline eligibility criteria for registration as an insolvency professional. It prevents IPEs from becoming professional members if they do not meet registration standards. * **Clause 10 (Membership):** * **Change:** Modifies subclause 1. * **New Rule:** Replaces "an individual" with "an individual or an insolvency professional entity recognised by the Board under regulation 13 of the Insolvency and Bankruptcy Board of India Insolvency Professionals Regulations, 2016". * **Effect:** This expands the definition of who can be a member of the IPA to explicitly include recognized IPEs. * **Clause 12 (Application for Membership):** * **Change:** Inserts a new item (fb) after item (fa) in subclause 1. * **New Rule:** Requires the application to include "details of the partners or directors, as the case may be, where the professional member is an insolvency professional entity". * **Effect:** This mandates that IPEs applying for membership provide details about their partners or directors, increasing transparency and accountability. * **Clause 12A (Renewal of Membership):** * **Change:** Modifies subclause 2 and inserts a proviso after subclause 2. * **New Rule:** Replaces "he" with "the professional member" in subclause 2. Adds a proviso stating that "item c, item e and item giii shall not be applicable for a professional member, which is an insolvency professional entity registered as an insolvency professional." * **Effect:** Subclause 2 becomes gender neutral. The proviso suggests some requirements for renewal are not applicable to IPEs registered as Insolvency Professionals * **Other Changes:** * Replaces "his" with "its" and "him" with "it" in various clauses (10, 12, 12A, 13, 20, 26, 27, 28, 30) to ensure gender neutrality and correct grammar when referring to entities. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders affected by these amendments are: * Insolvency Professional Agencies (IPAs) * Insolvency Professional Entities (IPEs) recognized by the IBBI under regulation 13 of the Insolvency and Bankruptcy Board of India Insolvency Professionals Regulations, 2016. * Individuals seeking to become insolvency professionals through IPEs. * The Insolvency and Bankruptcy Board of India (IBBI) **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Insolvency and Bankruptcy Board of India (IBBI) is responsible for implementing and overseeing these regulations. * **Timelines or procedures:** The regulations come into force on the date of their publication in the Official Gazette (October 3, 2022, according to the text). The amendment implies that IPAs need to update their membership application and enrollment processes to accommodate the new requirements for IPEs. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Enhanced Regulatory Clarity:** Clearer guidelines for the inclusion and regulation of IPEs within the IPA framework. * **Improved Accountability:** Increased transparency regarding the structure and leadership of IPEs applying for membership. * **Alignment with Registration Requirements:** Ensured that only eligible IPEs become professional members of IPAs, maintaining the quality and standards of insolvency professionals. * **Simplified Renewal Process:** For IPEs acting as insolvency professionals. **9. Conclusion:** The Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Amendment Regulations, 2022, represent a refinement of existing regulations to better integrate and oversee the role of Insolvency Professional Entities within the insolvency resolution process. The changes aim to enhance regulatory clarity, improve accountability, and ensure alignment with existing registration requirements. These amendments are significant for IPAs, IPEs, and individuals working in the insolvency profession, ultimately contributing to a more robust and transparent insolvency ecosystem.

Key Entities Referenced

Insolvency and Bankruptcy Board of India: A regulatory body in India. Insolvency and Bankruptcy Code, 2016: An act of Parliament of India that consolidates the existing framework by creating a single law for insolvency and bankruptcy. Insolvency and Bankruptcy Board of India Model ByeLaws and Governing Board of Insolvency Professional Agencies Regulations, 2016: Regulations by the Insolvency and Bankruptcy Board of India. Insolvency and Bankruptcy Board of India Model ByeLaws and Governing Board of Insolvency Professional Agencies Amendment Regulations, 2022: Amendment regulations to the 2016 regulations. Insolvency and Bankruptcy Board of India Insolvency Professionals Regulations, 2016: Regulations related to insolvency professionals. New Delhi: The location where the notification was issued. Ravi Mital: Chairperson of the Board. Insolvency and Bankruptcy Board of India Model ByeLaws and Governing Board of Insolvency Professional Agencies Third Amendment Regulations, 2021: Previous amendment to the 2016 regulations. Delhi: Location of the Controller of Publications
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-03102022-239324 xxxGIDHxxx CG-DL-E-03102022-239324 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 483] नई दिल्ली, सोमवार, अक्त बू र 3, 2022/आज‍व न 11, 1944 No. 483] NEW DELHI, MONDAY, OCTOBER 3, 2022/ASVINA 11, 1944 भारतीय दिवाला और िोधन अक्षमता बोड ड अजधसचू ना नई दिल्ली, 3 अक्त ूबर, 2022 भारतीय दिवाला और िोधन अक्षमता बोडड (आिि डउप-जवजधया ंऔर दिवाला व्यावसाजयक एिजें सयों का िासी बोडड) (सिं ोधन) जवजनयम, 2022 स.ं आई.बी.बी.आई./2022-23/िी.एन./आर.ई.िी.100.—भारतीय दिवाला और िोधन अक्षमता बोडड, दिवाला और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196, 203 और धारा 205 द्वारा प्रित्त िजियों का प्रयोग करते हुए, भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) जवजनयमन, 2016 का और संिोधन करन े के जलए जनम्नजलजखत जवजनयम बनाता ि,ै अथाडत:् - 1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) (संिोधन) जवजनयम, 2022 ि ै । (2) य ेरािपत्र में उनके प्रकािन की तारीख को प्रवृत्त िोंग े । 2. भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) जवजनयमन, 2016 (जिन्ि ेंइसमें इसके पश्चात ्“मूल जवजनयम” किा गया ि)ै की अनुसूची में,- (i) खडं 9 में,- (क) जवद्यमान खडं को उपखडं (1) के रूप में पनु संखयांदकत दकया िाएगा, 6671 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] (ख) उपखडं (1) के पश्चात्, जनम्नजलजखत अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:- “(2) भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) जवजनयमन, 2016 के जवजनयम 13 के अधीन बोडड द्वारा मान्यताप्राप्त दकसी भी दिवाला व्यावसाजयक संस्ट्था को तब व्यावसाजयक सिस्ट्य के रूप में नामांदकत निीं दकया िाएगा यदि वि बोड डके पास दिवाला व्यावसाजयक के रूप म ेंरजिस्ट्रीकृत दकए िाने का पात्र निीं ि ै।” (ii) खंड 10 के उपखंड (1) में, “कोई व्यजि” िब्िों के स्ट्थान पर “कोई व्यजि या भारतीय दिवाला और िोधन अक्षमता बोड ड (दिवाला व्यावसाजयक) जवजनयमन, 2016 के जवजनयम 13 के अधीन बोड ड द्वारा मान्यताप्राप्त कोई दिवाला व्यावसाजयक संस्ट्था” िब्ि रखे िाएगं े । (iii) खडं 12 के उपखडं (1) में मि (चक) के पश्चात,् जनम्नजलजखत अतं ःस्ट्थाजपत दकया िाएगा, अथाडत्:- “(चख) ििां व्यावसाजयक सिस्ट्य एक दिवाला व्यावसाजयक संस्ट्था ि ै विां यथाजस्ट्थजत, भागीिारों या जनिेिकों के ब्यौरे,” (iv) खडं 12क में, (क) (जिन्िी पाि में संिोधन अपेजक्षत निीं ि)ै (ख) उपखडं (2) के पश्चात्, जनम्नजलजखत परन्तुक अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:- “परन्तु मि (ग), मि (ङ) और मि (छ)(iii) ऐसे दकसी व्यावसाजयक सिस्ट्य के जलए लागू निीं िोगी िो दिवाला व्यावसाजयक के रूप में रजिस्ट्रीकृत दिवाला व्यावसाजयक संस्ट्था ि ै।” (v) (जिन्िी पाि म ेंसंिोधन अपेजक्षत निीं ि)ै (vi) (जिन्िी पाि म ेंसंिोधन अपेजक्षत निीं ि)ै रजव जमत्तल, अध्यक्ष [जवज्ञापन-III/4/असा./305/2022-23] ठिप्पण : भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) जवजनयमन, 2016, भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 421, तारीख 22 नवम्बर, 2016 में अजधसूचना स.ं आई.बी.बी.आई./2016-17/िी.एन./आर.ई.िी.001, तारीख 21 नवम्बर, 2016 द्वारा प्रकाजित दकए गए थे और उनमें अंजतम संिोधन भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 293, तारीख 22 िलु ाई, 2021 में अजधसूचना सं. आई.बी.बी.आई./2021-22/िी.एन./आर.ई.िी.076, तारीख 22 िुलाई, 2021 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड) (तीसरा संिोधन) जवजनयम, 2021 द्वारा दकया गया था । INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, the 3rd October, 2022 Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2022 No. IBBI/2022-23/GN/REG100.—In exercise of the powers conferred by sections 196, 203 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, 2022. (2) They shall come into force on the date of their publication in the Official Gazette.[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 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, (i) in clause 9, (a) the existing clause shall be renumbered as “9. (1)”, (b) after sub-clause (1), the following shall be inserted, namely: - “(2) No insolvency professional entity, recognised by the Board under regulation 13 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, shall be enrolled as a professional member if it is not eligible to be registered as an insolvency professional with the Board.” (ii) in clause 10, in sub-clause (1), for the words “an individual”, the words “an individual or an insolvency professional entity recognised by the Board under regulation 13 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016” shall be substituted. (iii) in clause 12, in sub-clause (1), after item (fa), the following shall be inserted, namely:- “(fb) details of the partners or directors, as the case may be, where the professional member is an insolvency professional entity;” (iv) in clause 12A, (a) in sub-clause (2), for the words “he”, the words “the professional member”, shall be substituted. (b) after the sub-clause (2), the following proviso shall be inserted, namely:- “Provided that the item (c), item (e) and item (g)(iii) shall not be applicable for a professional member, which is an insolvency professional entity registered as an insolvency professional.” (v) in sub-clause (8) of clause 10, sub-clause (7) of clause 12A, sub-clause (1) of clause 13, sub-clause (b) of clause 20, sub-clause (1) of clause 26, clause 27, clause 28 and clause 30, for the word “his”, the word “its” shall be substituted. (vi) in sub-clause (1) of clause 12, sub-clause (2) of clause 12A, and clause 20, for the word “him”, the word “it” shall be substituted. RAVI MITAL, Chairperson [ADVT.-III/4/Exty./305/2022-23] 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) (Third Amendment) Regulations, 2021 published vide notification No. IBBI/2021- 22/GN/REG076 dated 22nd July, 2021, in the Gazette of India, Extraordinary, Part III, Section 4, No. 293 on 22nd July, 2021. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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