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**Report: Analysis of the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Second 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 Second Amendment Regulations, 2022. This amendment focuses on enhancing transparency and accountability within Insolvency Professional Agencies (IPAs) and their members. Key changes include mandatory disclosure of relationships by Insolvency Professionals (IPs), clarification on pending disciplinary proceedings, and revised monetary penalties for contraventions. The amendment aims to strengthen the regulatory framework and ensure ethical conduct by IPs in insolvency resolution processes.
**2. Introduction:**
This report aims to provide an informative analysis of the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Second Amendment Regulations, 2022 (hereinafter referred to as "the Amendment"), based solely on the provided text. The report will outline the key changes introduced by the Amendment and their potential impact.
**3. Policy Overview:**
* This report analyzes an *amendment* to the Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations, 2016.
* Core Objective(s) (inferred from the text): The core objectives of the amendment appear to be:
* To increase transparency regarding relationships between IPs and other parties involved in the insolvency resolution process.
* To clarify the status of disciplinary proceedings against professional members of IPAs.
* To strengthen enforcement by revising the monetary penalties for non-compliance.
**4. Background and Rationale:**
The amendment likely addresses the need for greater transparency and accountability within the insolvency resolution process. Specifically, the provided text suggests the following reasons for this amendment:
* **Disclosure of Relationships:** There's a perceived need for stakeholders to have better visibility into the relationships that IPs have with other professionals, creditors, and potential resolution applicants. This addresses potential conflicts of interest and enhances the integrity of the process.
* **Clarity on Disciplinary Proceedings:** There appears to be a lack of clarity regarding when a disciplinary proceeding is considered "pending." The amendment clarifies this to ensure consistent application of disciplinary measures.
* **Revised Monetary Penalties:** The existing penalty structure may have been deemed insufficient to deter non-compliance, necessitating an adjustment in the penalty amounts and structure.
**5. Key Provisions / Changes:**
This section details the specific changes introduced by the Amendment:
* **Change 1: Disclosure of Relationships by Insolvency Professionals**
* **Original Policy Part Changed:** Schedule i in clause 6 of the principal regulations is amended by inserting a new subclause 3.
* **New Rule/Provision:** IPAs are now required to:
* Facilitate the receipt of relationship disclosures from their professional members (IPs) as per IBBI regulations.
* Disseminate these disclosures on their website in a specified format within three working days of receipt. The format includes details of the IP, the corporate debtor, and relationships with various parties like financial creditors, interim finance providers, resolution applicants, valuers, accountants, and advocates.
* Ensure IPs confirm that all other professional appointments are made at arm's length.
* **Difference/Effect:** This change significantly increases transparency by making IP relationships readily accessible to stakeholders. It aims to minimize potential conflicts of interest and promotes fairness in the resolution process.
* **Change 2: Clarification on Pending Disciplinary Proceedings**
* **Original Policy Part Changed:** After clause 23A in Schedule i of the principal regulations, an explanation is inserted.
* **New Rule/Provision:** A disciplinary proceeding is considered pending from the date a show cause notice is issued by the IPA or the Board until the Disciplinary Committee of the IPA or the Board disposes of it.
* **Difference/Effect:** This provides a clear definition of when a disciplinary proceeding is considered pending, which may affect the IP's eligibility to take on new assignments and clarifies the point at which sanctions or other measures can be applied.
* **Change 3: Revised Monetary Penalties**
* **Original Policy Part Changed:** Subclause 2 of clause 24 in Schedule i of the principal regulations is amended, specifically item d concerning monetary penalties.
* **New Rule/Provision:** A new table of monetary penalties is introduced for various contraventions of the byelaws and regulations. The penalties range from ₹50,000 to ₹2,00,000, or 25% of the fee (whichever is higher), depending on the severity of the contravention. Specific contraventions listed include:
* Failing to submit disclosures or submitting incorrect information.
* Accepting assignments with conflicts of interest.
* Failing to maintain records properly.
* Rejecting claims without proper reasons.
* Failing to comply with directions from authorities.
* Outsourcing duties and obligations.
* Failing to appoint registered valuers.
* Failing to supply information to the Agency, Board or Adjudicating Authority.
* Failing to make public announcements.
* Failing to provide notice regarding meetings of creditors.
* Failing to reject resolution plans from ineligible applicants.
* Failing to take action in respect of preferential transactions.
* Entering into contracts improperly.
* Contravening any byelaw provision without a specific penalty.
* **Difference/Effect:** The updated penalties provide a more structured and potentially more stringent enforcement mechanism. The "whichever is higher" clause, relative to a percentage of fees, may create a greater deterrent, especially for higher-value assignments.
**6. Target Audience and Stakeholders:**
Based on the provided text, the primary target audience and stakeholders are:
* Insolvency Professional Agencies (IPAs).
* Insolvency Professionals (IPs) who are members of these agencies.
* The Insolvency and Bankruptcy Board of India (IBBI).
* Adjudicating Authority and Appellate Authority.
* Other Professionals engaged by IRPs (e.g. valuers, accountants, lawyers).
* Financial Creditors.
* Prospective Resolution Applicants.
* Corporate Debtors.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The IBBI is the primary body responsible for implementing and overseeing these amendments. IPAs are responsible for ensuring compliance by their members.
* **Timelines:** The amendment comes into force on the date of its publication in the Official Gazette (October 31, 2022). IPAs have three working days to disseminate relationship disclosures on their websites after receiving them from their members.
* **Procedures:**
* IPAs must establish procedures for receiving and disseminating relationship disclosures.
* IPAs must update their internal processes to ensure compliance with the revised penalty structure.
* The Board will likely issue formats for the annual compliance certificate.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* **Increased Transparency:** Improved disclosure of IP relationships will enhance transparency and reduce potential conflicts of interest, leading to fairer and more credible insolvency resolution processes.
* **Enhanced Accountability:** The clarification on pending disciplinary proceedings and the revised monetary penalties will strengthen accountability and deter non-compliance by IPs.
* **Improved Regulatory Oversight:** The amendments will provide the IBBI with more effective tools for oversight and enforcement, ensuring that IPAs and IPs adhere to the regulatory framework.
* **Greater Stakeholder Confidence:** Increased transparency and accountability will build greater confidence among stakeholders (creditors, debtors, potential resolution applicants) in the integrity of the insolvency resolution process.
**9. Conclusion:**
The Insolvency and Bankruptcy Board of India Model Bye-Laws and Governing Board of Insolvency Professional Agencies Second Amendment Regulations, 2022, represent a significant step towards strengthening the regulatory framework for insolvency professionals in India. The amendments focus on enhancing transparency, clarifying disciplinary procedures, and increasing the severity of penalties for non-compliance. These changes are likely to improve the integrity and effectiveness of the insolvency resolution process, ultimately benefiting all stakeholders.
Key Entities Referenced
NEW DELHI: City in India where the notification was issued.
Insolvency and Bankruptcy Board of India: Regulatory body that issued the notification.
Insolvency and Bankruptcy Code, 2016: The legal framework authorizing the regulations.
Insolvency and Bankruptcy Board of India Model ByeLaws and Governing Board of Insolvency Professional Agencies Second Amendment Regulations, 2022: The full title of the amendment regulations being introduced.
Insolvency and Bankruptcy Board of India Model ByeLaws and Governing Board of Insolvency Professional Agencies Regulations, 2016: The principal regulations being amended.
Insolvency Professionals Regulations, 2016: Regulations related to relationship disclosures from professional members.
Disciplinary Committee: Committee of the Agency or the Board responsible for disciplinary proceedings.
Adjudicating Authority: Authority that issues directions.
Appellate Authority: Authority that issues directions.
Ravi Mital: Chairperson of the entity issuing the notification.
Government of India Press, Ring Road, Mayapuri, New Delhi110064: Location of printing.
Controller of Publications, Delhi110054: Publisher of the notification
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 535] नई दिल्ली, सोमवार, अक्त बू र 31, 2022/कार्तकड 9, 1944
No. 535] NEW DELHI, MONDAY, OCTOBER 31, 2022/KARTIKA 9, 1944
भारतीय दिवाला और िोधन अक्षमता बोड ड
अजधसचू ना
नई दिल्ली, तारीख 31 अक्तूबर, 2022
भारतीय दिवाला और िोधन अक्षमता बोडड (आिि ड उप-जवजधया ं और दिवाला व्यावसाजयक एिजें सयों का िासी बोडड)
(िसू रा सिं ोधन) जवजनयम, 2022
स.ं आई.बी.बी.आई./2022-23/िी.एन./आर.ई.िी.101.—भारतीय दिवाला और िोधन अक्षमता बोडड, दिवाला
और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196, धारा 203 और धारा 205
द्वारा प्रित्त िजक्तयों का प्रयोग करते हुए, भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला
व्यावसाजयक एिेंजसयों का िासी बोडड) जवजनयमन, 2016 का और संिोधन करन े के जलए जनम्नजलजखत जवजनयम बनाता
ि,ैअथाडत्: -
1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोडड (आिि ड उप-जवजधयां और दिवाला
व्यावसाजयक एिेंजसयों का िासी बोडड) (िसू रा संिोधन) जवजनयम, 2022 ि।ै
(2) ये रािपत्र म ेंउनके प्रकािन की तारीख को प्रवृत्त िोंगे ।
2. भारतीय दिवाला और िोधन अक्षमता बोडड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी बोडड)
जवजनयमन, 2016 (जिन्ि ें इसम ें इसके पश्चात ् “मूल जवजनयम” किा गया ि)ै म,ें जवजनयम 7 के उप-जवजनयम (3) के
स्ट्थान पर जनम्नजलजखत रखा िाएगा, अथातड ्:-
7245 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“(3) अनुपालन अजधकारी बोडड को यि सत्याजपत करते हुए दक दिवाला व्यावसाजयक एिेंसी ने उप-जवजनयम (1) म ें
जनर्िष्टड उपबपंधों का अनुपालन दकया ि,ै बोडड द्वारा िारी दकए गए प्ररूप म ें वार्षडक रूप स े एक अनुपालन
प्रमाणपत्र प्रस्ट्तुत करेगा ।
परन्त ु वार्षडक अनुपालन प्रमाणपत्र पर दिवाला व्यावसाजयक एिेंसी के प्रबंध जनिेिक द्वारा भी िस्ट्ताक्षर दकए
िाएंगे।”
3. मूल जवजनयमों की अनुसूची म,ें -
(i) खंड 6 म,ें उपखंड (2) के पश्चात ् जनम्नजलजखत उपखंड अंतःस्ट्थाजपत दकया िाएगा, अथाडत:्-
“(3) एिेंसी –
(क) अपन े व्यावसाजयक सिस्ट्यों स,े भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक)
जवजनयमन, 2016 के अनुसार संबंध-प्रकटन प्राप्त करना सुकर बनाएगी;
(ख) अपने व्यावसाजयक सिस्ट्य स े प्रकटनों के प्राप्त िोने के तीन काय ड दिवस के भीतर उन प्रकटनों को जनम्नजलजखत
प्ररूप म ेंअपनी वैबसाइट पर प्रसाठरत करेगी:
दिवाला व्यावसाजयक द्वारा सबं धं का प्रकटन
..............(कारपोरेट ऋणी) की समाधान प्रदियाओं का संचालन करन े वाल े दिवाला व्यावसाजयकों और दिवाला
व्यावसाजयकों द्वारा जनयुक्त दकए गए अन्य व्यावसाजयकों द्वारा प्रकटन
दिवाला व्यावसाजयक व्यावसाजयक स्ट्थायी जनम्नजलजखत के साथ सबं धं
व्यावसाजयक/ का नाम सिस्ट्यता स.ं खाता अतं ठरम अन्य कारपोरेट जवत्तीय लने िार अतं ठरम भावी
दिवाला सखं याकं समाधान व्यावसाजयक ऋणी (लने िारों) का/के जवत्त समाधान
व्यावसाजयकद्वा व्यावसाजयक/ (रजिस्ट्रीकृत नाम प्रिाता आविे क
रा जनयोजित समाधान मल्ू याकं क/ (आविे कों)
अन्य व्यावसाजयक लखे ाकार/ का/के नाम
व्यावसाजयक
अजधवक्ता/अन्य
कोई
व्यावसाजयक)
अंतठरम लाग ूनिीं
समाधान िोता
व्यावसाजयक/
समाधान
वम्यावसाजयक
रजिस्ट्रीकृत लाग ूनिीं
मूल्यांकक िोता
लेखाकार लाग ूनिीं ‘क’
िोता
अजधवक्ता लाग ूनिीं
िोता
अन्य कोई लाग ूनिीं
व्यावसाजयक िोता
(व्यवसाय का
प्रकार
जलजखए)
ठटप्पण:
(i) ििा ं किीं भी एक स े अजधक व्यावसाजयक, जवत्तीय लेनिार, अंतठरम जवत्त प्रिाता या भावी समाधान आवेिक ि ैं विा ं
यथा-अपेजक्षत अजतठरक्त पंजक्तयां और स्ट्तंभ अतं ःस्ट्थाजपत दकए िाए ं ।[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
(ii) ििा ं दकसी लेखाकार का दकसी जवत्तीय लेनिार के साथ क प्रकार का संबंध ि ै विां सुसंगत प्रकोष्ठ ‘क’ प्रिर्िडत करेगा,
िैसा दक उपयुडक्त सारणी म ें उपिर्िडत ि ै । कोई व्यजक्त संबंध के ब्यौरे का पता लगाने के जलए ‘क’ पर जक्लक कर
सकेगा ।
(ग) अपन े व्यावसाजयक सिस्ट्य स े इस आिय की पुजष्ट की प्राजप्त सजु नजश्चत करेगी दक प्रत्येक अन्य व्यावसाजयक की
जनयुजक्त जनबंजधत संबंधों के आधार पर की गई ि ै।”
(ii) खंड 23क के पश्चात,् जनम्नजलजखत स्ट्पष्टीकरण अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:-
“स्ट्पष्टीकरण: व्यावसाजयक सिस्ट्य के जवरुद्ध उस तारीख स,े जिसको उसे यथाजस्ट्थजत, एिेंसी या बोड ड द्वारा कारण
बताओ सूचना िारी की गई ि,ै यथाजस्ट्थजत, एिेंसी की अनुिाजनक सजमजत या बोडड द्वारा उसका जनपटारा दकए िाने
तक, अनुिासजनक कायडवािी लजं बत समझी िाएगी ।”
(iii) खंड 24 के उपखडं (2) म,ें मि (घ) के स्ट्थान पर, जनम्नजलजखत मि रखी िाएगी, अथाडत:्-
“(घ) नीच े िी गई सारणी के अनुसार धनीय िाजस्ट्त का अजधरोपण:-
िम उल्लघं न धनीय िाजस्ट्त
स.ं
1 संजिता या उसके अधीन बनाए गए जवजनयमों या एिेंसी की न्यूनतम 50,000 रुपए के अधीन रिते हुए, 1,00,000
उप-जवजधयों के अधीन यथापेजक्षत या बोडड अथवाएिेंसी द्वारा रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
मांग े गए दकसी जनयतकायड (असाइनमेंट) से संबंजधत प्रकटन, िो ।
जववरजणयां आदि एिेंसी को प्रस्ट्तुत करने में असफल रिता ि ैया
अपयाडप्त या गलत प्रकटन, जववरजणयां आदि प्रस्ट्तुत करता िै ।
2 ऐसे असाइनमेंट को स्ट्वीकार करता ि ै जिसमें जितधारकों के न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,000
साथ जित-संघषड ि ै। रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
3 अपने दकसी असाइनमेंट से संबंजधत अजभलेख समुजचत रूप से न्यूनतम 50,000 रुपए के अधीन रिते हुए, 1,00,000
रखने में असफल रिता ि ै। रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
4 कोई असाइनमेंट करते समय, दकसी िाव े(िावों) को कोई उजचत न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,000
कारण दिए जबना नामंिूर करता ि ै या िाव े के सत्यापन म ें रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
सम्यक् तत्परता बरतने में असफल रिता ि ै। िो ।
5 न्यायजनणाडयक प्राजधकारी या अपील प्राजधकारी द्वारा िारी न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,000
जनििे ों का अनुपालन करने में असफल रिता िै। रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
6 अपने कतडव्य और बाध्यताएं बािरी स्रोत से पूरी कराता ि ै। न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,000
रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
7 मूल्यांकन कराने के जलए संजिता या उसके अधीन बनाए गए न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,000
जवजनयमों के अधीन, ििां किीं भी आवश्यक िो, रजिस्ट्रीकृत रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
मूल्यांकक जनयुक्त करने में असफल रिता ि ै। िो ।
8 मांगी गई िानकारी प्रित्त करने या एिेंसी, बोडड, न्यायजनणाडयक न्यूनतम 50,000 रुपए के अधीन रिते हुए, 1,00,000
प्राजधकारी या अपील प्राजधकारी द्वारा ईजप्सत िानकारी संबंधी रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
अपेक्षाओं का अनपु ालन करने में असफल रिता ि ै या जनरीक्षण िो ।
या अन्वेषण प्राजधकारी के साथ सियोग निीं करता ि ै।
9 सुसंगत जवजनयमों में उपबंजधत रीजत में सावडिजनक उद्घोषणा न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,000
करने में असफल रिता ि ै। रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
10 लेनिारों की बैिकों के संबंध में सूचना िने े में असफल रिता ि ै। न्यूनतम 50,000 रुपए के अधीन रिते हुए, 1,00,000
रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
11 अपात्र समाधान आवेिकों से प्राप्त समाधान योिना को नामंिूर न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,0004 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
करने में असफल रिता ि ै। रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
12 अजधमानी, न्यून-मूल्यांदकत, कपटपूणड या अजतिय संव्यविारों न्यूनतम 1,00,000 रुपए के अधीन रिते हुए, 2,00,000
की बाबत कारडवाई करने में असफल रिता ि ै। रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
13 व्यावसाजयकों के साथ अपूणड और अनुजचत रीजत में संजविा या न्यूनतम 50,000 रुपए के अधीन रिते हुए, 1,00,000
करार करता िै । रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
िो ।
14 उप-जवजधयों या जवजनयमों के दकसी ऐसे उपबंध का उल्लंघन न्यूनतम 50,000 रुपए के अधीन रिते हुए, 1,00,000
करता ि,ै जिसके जलए दकसी जवजनर्िष्टड िाजस्ट्त का उपबंध निीं रुपए या फीस के 25 प्रजतित तक, इनमें से िो भी उच् चतर
दकया गया ि ै। िो ।
रजव जमत्तल, अध्यक्ष
[जवज्ञापन-III/4/असा./361/2022-23]
ठटप्पण: भारतीय दिवाला और िोधन अक्षमता बोड ड (आििड उप-जवजधयां और दिवाला व्यावसाजयक एिेंजसयों का िासी
बोडड) जवजनयमन, 2016, भारत के रािपत्र, असाधारण, भाग III, खंड 4, स.ं 421, तारीख 22 नवम्बर, 2016
म ें अजधसूचना सं. आई.बी.बी.आई./2016-17/िी.एन./आर.ई.िी.001, तारीख 21 नवम्बर, 2016 द्वारा
प्रकाजित दकए गए थ े और उनम ें अंजतम संिोधन भारत के रािपत्र, असाधारण, भाग 3,खंड 4,स.ं 483, तारीख
3 अक्तूबर, 2022 म ें अजधसूचना स.ं आई.बी.बी.आई./2022-23/िी.एन./आर.ई.िी.100, तारीख 3 अक्तूबर,
2022 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोड ड (आिि ड उप-जवजधयां और दिवाला
व्यावसाजयक एिेंजसयों का िासी बोडड) (संिोधन) जवजनयम, 2022 द्वारा दकया गया था ।
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 31st October, 2022
Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional
Agencies) (Second Amendment) Regulations, 2022
No. IBBI/2022-23/GN/REG101.—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) (Second Amendment) Regulations, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
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’), sub-regulation
(3) in regulation 7, shall be substituted by following, namely:-
“(3) The compliance officer shall submit to the Board, a compliance certificate annually in the format
issued by the Board, verifying that the insolvency professional agency has complied with the provisions
referred to in sub-regulation (1):
Provided that the annual compliance certificate shall also be signed by the managing director of the
insolvency professional agency.”
3. In the principal regulations, in the Schedule-
(i) in clause 6, after sub-clause (2), the following sub-clause shall be inserted, namely:-
“(3) The Agency shall-[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 5
(a) facilitate receipt of relationship disclosures from its professional members in accordance with the
Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016;
(b) disseminate the disclosures on its website in the following format, within three working days of the receipt
of the disclosures from its professional member:
DISCLOSURE OF RELATIONSHIP BY AN INSOLVENCY PROFESSIONAL
Disclosures by the insolvency professionals and other professionals appointed by the insolvency professionals
conducting resolution processes of …… (name of the corporate debtor)
Insolvency Name of Professional Permanent Relationship with
professional / professional membership account Interim Other Corporate Name of Interim Name of
other number number resolution professional debtor financial finance prospective
professional (PAN) professional (registered creditor (s) provider resolution
engaged by / resolution valuer (s) applicant(s)
the insolvency professional / accountant /
professional advocate / any
other
professional)
Interim NA
resolution
professional /
resolution
professional
Registered NA
valuer
Accountant NA A
Advocate NA
Any other NA
professional
(write kind
of
profession)
Notes:
(i) NA: Not Applicable.
(ii) Additional rows and columns to be inserted, as required, where there are more than one professional,
financial creditor, interim finance provider or prospective resolution applicant.
(iii) Where an accountant has relationship of kind A with a financial creditor, relevant cell will display ‘A’, as
indicated in the above table. One may click on ‘A’ to find details of relationship.
(c) ensure receipt of confirmation from its professional member to the effect that the appointment of every
other professional has been made at arm’s length relationship.”
(ii) after clause 23A, the following explanation shall be inserted, namely:-
“Explanation.- A disciplinary proceeding shall be considered as pending against the professional member
from the date he has been issued a show cause notice by the Agency or the Board, as the case may be, till its
disposal by the Disciplinary Committee of the Agency or the Board, as the case may be.”
(iii) in clause 24, in sub-clause (2), for item (d), the following shall be substituted, namely:-
“(d) imposition of monetary penalty as per Table below:
Sl. Contravention Monetary Penalty
No.
1. Fails to submit disclosures, returns, etc. to Agency or Up to ₹ 1,00,000 or 25% of fee, whichever is higher,
submits inadequate or incorrect disclosures, returns, etc., subject to a minimum ₹ 50,000.
relating to any assignment, as required under the Code
and Regulations made thereunder or bye-laws of the
Agency or called upon by the Board or the Agency.
2. Accepts an assignment having conflict of interests with Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
the stakeholders. subject to a minimum ₹ 1,00,000.
3. Fails to maintain records properly relating to any of his Up to ₹ 1,00,000 or 25% of fee, whichever is higher,
assignments. subject to a minimum ₹ 50,000.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
4. Rejects a claim(s) without giving any proper reason Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
while undertaking an assignment or fails to exercise due subject to a minimum ₹ 1,00,000.
diligence in claim verification.
5. Fails to comply with directions issued by Adjudicating Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
Authority or the Appellate Authority. subject to a minimum ₹ 1,00,000.
6. Outsources his duties and obligations. Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
subject to a minimum ₹ 1,00,000.
7. Fails to appoint registered valuers, wherever required, Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
under the Code or Regulations made thereunder, for subject to a minimum ₹ 1,00,000.
conducting valuation.
8. Fails to supply the information called for or to comply Up to ₹ 1,00,000 or 25% of fee, whichever is higher,
with the requirements of information sought by the subject to a minimum ₹ 50,000.
Agency, Board, Adjudicating Authority or the Appellate
Authority or does not cooperate with the inspection or
investigating authority.
9. Fails to make public announcement in the manner Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
provided for in the relevant Regulations. subject to a minimum ₹ 1,00,000.
10. Fails to provide notice regarding meetings of creditors. Up to ₹ 1,00,000 or 25% of fee, whichever is higher,
subject to a minimum ₹ 50,000.
11. Fails to reject resolution plan from ineligible resolution Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
applicants. subject to a minimum ₹ 1,00,000.
12. Fails to take action in respect of preferential, Up to ₹ 2,00,000 or 25% of fee, whichever is higher,
undervalued, fraudulent or extortionate credit subject to a minimum ₹ 1,00,000.
transactions.
13. Enters into contract or agreement with professionals in Up to ₹ 1,00,000 or 25% of fee, whichever is higher,
an incomplete and improper manner. subject to a minimum ₹ 50,000.
14. Contravenes any provision of the bye-laws, or Up to ₹ 1,00,000 or 25% of fee, whichever is higher,
regulations for which no specific penalty has been subject to a minimum ₹ 50,000.
provided.
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./361/2022-23]
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) (Amendment) Regulations, 2022 published vide
notification No. IBBI/2022-23/GN/REG100 in the Gazette of India, Extraordinary, Part III, Section 4, No.
483 on dated 3rd October, 2022.
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.