Home India Insolvency and Bankruptcy Board of India In exercise of the powers conferred by sections 196 207 and ...
Date: 2021-04-27 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sections 196 207 and 208 read with section 240 of the Insolvency and Bankruptcy Code 2016

Issued by Insolvency and Bankruptcy Board of India · Not Applicable

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Executive Summary & Key Takeaways

## Report on the Insolvency and Bankruptcy Board of India Insolvency Professionals Amendment Regulations, 2021 **1. Executive Summary:** This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Insolvency Professionals Amendment Regulations, 2021, as published in the Gazette of India on April 27, 2021. This amendment primarily focuses on extending the deadline for fee payments for the financial year 2020-2021 for insolvency professionals and insolvency professional entities, and defines notification requirements for changes in directorship/partnership within insolvency professional entities within a specified timeframe. This report aims to provide a clear overview of the changes and their potential implications for insolvency professionals and related entities. **2. Introduction:** This report provides an informative analysis of the Insolvency and Bankruptcy Board of India Insolvency Professionals Amendment Regulations, 2021, based solely on the text provided in the official notification. The objective is to offer a concise understanding of the amendments, their rationale, and their impact on relevant stakeholders within the insolvency and bankruptcy ecosystem. **3. Policy Overview:** This amendment modifies the Insolvency and Bankruptcy Board of India Insolvency Professionals Regulations, 2016. The core objective of the original regulations, as inferred from the amendment's context, is to regulate and govern the conduct and operations of insolvency professionals and entities in India. **4. Background and Rationale:** This specific amendment seems designed to address practical difficulties related to fee payment deadlines during the financial year 2020-2021 and streamline the process of informing the board of changes in directorship/partnership within insolvency professional entities. The extension of the fee payment deadline likely responds to challenges faced by insolvency professionals and entities during that period, while the notification requirements for changes in directorship/partnership ensures the IBBI maintains an accurate record of personnel within these entities. **5. Key Provisions / Changes:** This amendment introduces three primary changes to the existing Insolvency Professionals Regulations, 2016: * **Extension of Fee Payment Deadline (Regulation 7 & Regulation 13):** It provides a further proviso to regulation 7(2)(ca) and regulation 13(2)(ca), extending the deadline for insolvency professionals and entities to pay fees for the financial year 2020-2021 until June 30, 2021. This change offers a grace period for compliance. * **Notification of Cessation of Directorship/Partnership (Regulation 13):** It introduces a proviso to regulation 13(2)(b) requiring Insolvency Professional Entities (IPEs) to inform the Board within 30 days of an individual ceasing to be a director or partner. This applies to cessations occurring between the commencement date of this amendment and December 31, 2021. * **Notification of Joining of Directorship/Partnership (Regulation 13):** It introduces a proviso to regulation 13(2)(c) requiring Insolvency Professional Entities (IPEs) to inform the Board within 30 days of an individual joining as a director or partner. This applies to joining occurring between the commencement date of this amendment and December 31, 2021. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders are: * Insolvency Professionals (IPs). * Insolvency Professional Entities (IPEs). * The Insolvency and Bankruptcy Board of India (IBBI). **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Insolvency and Bankruptcy Board of India (IBBI) is the responsible body for implementing and overseeing these amendments. * **Timelines:** * The fee payment extension applies specifically to the financial year 2020-2021, with a revised deadline of June 30, 2021. * The changes relating to the intimation of change in directorship/partnership are applicable for changes occurring between the date of commencement of this amendment and December 31, 2021, with a 30-day notification window following the change. * **Procedures:** IPEs must adhere to a 30-day window to notify the IBBI when individuals join or cease to be directors or partners. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Fee Payment Extension:** Facilitate smoother compliance with fee payment obligations for IPs and IPEs, especially given the possible financial strain experienced during the 2020-2021 financial year. * **Notification of Changes in Directorship/Partnership:** Enhanced transparency and accuracy in the IBBI's records regarding the composition of IPEs. This enables better oversight and regulation of these entities. **9. Conclusion:** The Insolvency and Bankruptcy Board of India Insolvency Professionals Amendment Regulations, 2021, introduce targeted changes to the existing regulatory framework. The fee payment extension offers temporary relief, while the enhanced reporting requirements aim to improve the IBBI's oversight of IPEs by ensuring timely updates on changes in personnel. These amendments are significant for insolvency professionals and entities operating within the Insolvency and Bankruptcy Code framework.

Key Entities Referenced

Insolvency and Bankruptcy Board of India: A regulatory body in India. Insolvency and Bankruptcy Code, 2016: An Indian law relating to insolvency and bankruptcy. Insolvency Professionals Amendment Regulations, 2021: Regulations amending the Insolvency Professionals Regulations. Insolvency Professionals Regulations, 2016: Regulations pertaining to insolvency professionals. New Delhi: The location where the notification was issued. It is the capital of India. Sudhaker Shukla: Wholetime Member of Insolvency and Bankruptcy Board of India Government of India Press, Ring Road, Mayapuri, New Delhi110064: Government of India Press address Controller of Publications, Delhi110054: Controller of Publications address Insolvency Professionals Second Amendment Regulations, 2018: Regulations amending the Insolvency Professionals Regulations. Insolvency Professionals Amendment Regulations, 2019: Regulations amending the Insolvency Professionals Regulations. Insolvency Professionals Second Amendment Regulations, 2019: Regulations amending the Insolvency Professionals Regulations. Insolvency Professionals Amendment Regulations, 2020: Regulations amending the Insolvency Professionals Regulations. Insolvency Professionals Second Amendment Regulations, 2020: Regulations amending the Insolvency Professionals Regulations. Insolvency Professionals Amendment Regulations, 2018: Regulations amending the Insolvency Professionals Regulations.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 ससीी..जजीी..--डडीी..एएलल..--अअ..--2277004422002211--222266777722 xxxGIDHxxx CCGG--DDLL--EE--2277004422002211--222266777722 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 185] नई दिल्ली, मगं लवार, अप्रलै 27, 2021/विै ाख 7, 1943 No. 185] NEW DELHI, TUESDAY, APRIL 27, 2021/VAISAKHA 7, 1943 भारतीय दिवाला और िोधन अक्षमता बोड ड अजधसचू ना नई दिल्ली, 27 अप्रलै , 2021 भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) (सिं ोधन) जवजनयम, 2021 आई.बी.बी.आई./2021-22/िी.एन./आर.ई.िी.073.—भारतीय दिवाला और िोधन अक्षमता बोडड, दिवाला और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196, धारा 207 और धारा 208 द्वारा प्रित्त िजियों का प्रयोग करते हुए, भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) जवजनयमन, 2016 का और संिोधन करने के जलए जनम्नजलजखत जवजनयम बनाता ि,ै अथाडत:् - 1. (1) इन जवजनयमों का संजक्षप्त नाम भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) (संिोधन) जवजनयम, 2021 ि ै। (2) य ेरािपत्र में प्रकािन की तारीख को प्रवृत्त िोंग े । 2. भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) जवजनयमन, 2016 (जिन्ि ेंइसमें इसके पश्चात् मलू जवजनयम किा गया ि)ै के जवजनयम 7 के उप-जवजनयम (2) के खंड (गक) म,ें परन्तुक के पश्चात् जनम्नजलजखत परन्तकु अंतःस्ट्थाजपत दकया िाएगा, अथाडत:् – “परन्त ु यि और दक जवत्तीय वर् ड 2020-21 के जलए, कोई दिवाला व्यावसाजयक इस खंड के अधीन फीस का संिाय 30 िून, 2021 को या उससे पवू ड करेगा ।” 2406 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] 3. मूल जवजनयमों के जवजनयम 13 के उप-जवजनयम (2) म,ें- (i) खडं (ख) म,ें परन्तुक के पश्चात् जनम्नजलजखत परन्तुक अतं ःस्ट्थाजपत दकया िाएगा, अथाडत्:- “परन्त ु यि और दक िब कोई व्यजि, भारतीय दिवाला और िोधन अक्षमता बोड ड (दिवाला व्यावसाजयक) (संिोधन) जवजनयम, 2021 के प्रारंभ की तारीख से और 31 दिसम्बर, 2021 को समाप्त अवजध तक यथाजस्ट्थजत, उसका जनिेिक या भागीिार निीं रि िाता ि ै तब दिवाला व्यावसाजयक संस्ट्था, ऐसा जनिेिक या भागीिार न रिने के तीस दिन के भीतर बोडड को सूजचत करेगा;” (ii) खंड (ग) में, परन्तुक के पश्चात् जनम्नजलजखत परन्तुक अतं ःस्ट्थाजपत दकया िाएगा, अथाडत्:- “परन्त ु यि और दक िब कोई व्यजि, भारतीय दिवाला और िोधन अक्षमता बोड ड (दिवाला व्यावसाजयक) (संिोधन) जवजनयम, 2021 के प्रारंभ की तारीख से और 31 दिसम्बर, 2021 को समाप्त अवजध तक यथाजस्ट्थजत, उसके जनिेिक या भागीिार के रूप में प्रवेि करता ि ै तब दिवाला व्यावसाजयक संस्ट्था, ऐसे प्रवेि से तीस दिन के भीतर बोडड को सूजचत करेगा;” (iii) खंड (गक) में, परन्तुक के पश्चात् जनम्नजलजखत परन्तुक अतं ःस्ट्थाजपत दकया िाएगा, अथाडत्:- “परन्तु यि और दक जवत्तीय वर्ड 2020-21 के जलए, कोई दिवाला व्यावसाजयक संस्ट्था, इस खडं के अधीन फीस का संिाय 30 िून, 2021 को या उससे पूवड करेगा; और” । सुधाकर िुक्ला, पूणडकाजलक सिस्ट्य [जवज्ञापन III/4/असा./49/2021-22] ठिप्पण: भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) जवजनयमन, 2016, भारत के रािपत्र, असाधारण, भाग III, खंड 4, स.ं 424, तारीख 23 नवम्बर, 2016 म ें अजधसूचना सं. आई.बी.बी.आई./2016- 17/िी.एन./आर.ई.िी.003, तारीख 23 नवम्बर, 2016 द्वारा प्रकाजित दकए गए थ ेऔर तत्पश्चात् - (1) भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 125, तारीख 28 माचड, 2018 में अजधसूचना सं. आई.बी.बी.आई./2017-18/िी.एन./आर.ई.िी.027, तारीख 27 माच,ड 2018 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोड ड(दिवाला व्यावसाजयक) (संिोधन) जवजनयम, 2018; (2) भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 384, तारीख 11 अिूबर, 2018 में अजधसूचना सं. आई.बी.बी.आई./2018-19/िी.एन./आर.ई.िी.036, तारीख 11 अिूबर, 2018 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) (िसू रा संिोधन) जवजनयम, 2018; (3) भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 257, तारीख 23 िलु ाई, 2019 में अजधसूचना सं. आई.बी.बी.आई./2019-20/िी.एन./आर.ई.िी.045, तारीख 23 िुलाई, 2019 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोड ड(दिवाला व्यावसाजयक) (संिोधन) जवजनयम, 2019; (4) भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 367, तारीख 25 अिूबर, 2019 में अजधसूचना सं. आई.बी.बी.आई./2019-20/िी.एन./आर.ई.िी.049, तारीख 25 अिूबर, 2019 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोडड (दिवाला व्यावसाजयक) (िसू रा संिोधन) जवजनयम, 2019; (5) भारत के रािपत्र, असाधारण, भाग III, खडं 4, सं. 154, तारीख 24 अप्रलै , 2020 म ें अजधसूचना सं. आई.बी.बी.आई./2020-21/िी.एन./आर.ई.िी.057, तारीख 20 अप्रलै , 2020 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोड ड(दिवाला व्यावसाजयक) (संिोधन) जवजनयम, 2020; और[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 (6) भारत के रािपत्र, असाधारण, भाग III, खंड 4, सं. 238, तारीख 1 िलु ाई, 2020 में अजधसूचना सं. आई.बी.बी.आई./2020-21/िी.एन./आर.ई.िी.061, तारीख 30 िून, 2020 द्वारा प्रकाजित भारतीय दिवाला और िोधन अक्षमता बोड ड(दिवाला व्यावसाजयक) (िसू रा संिोधन) जवजनयम, 2020 द्वारा उनमें संिोधन दकए गए । INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, the 27th April, 2021 Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021 No. IBBI/2021-22/GN/REG073.- In exercise of the powers conferred by sections 196, 207 and 208 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 (Insolvency Professionals) Regulations, 2016, namely:- 1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021. (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 (Insolvency Professionals) Regulations, 2016 (hereinafter referred to as the principal regulations), in regulation 7, in sub-regulation (2), in clause (ca), after the proviso, the following proviso shall be inserted, namely:- “Provided further that for the financial year 2020-2021, an insolvency professional shall pay the fee under this clause on or before the 30th June, 2021.” 3. In the principal regulations, in regulation 13, in sub-regulation (2), (i) in clause (b), after the proviso, the following proviso shall be inserted, namely:- “Provided further that when an individual ceases to be its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021 and ending on the 31st December 2021, the insolvency professional entity shall inform the Board, within thirty days of such cessation;” (ii) in clause (c), after the proviso, the following proviso shall be inserted, namely:- “Provided further that when an individual joins as its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021 and ending on the 31st December 2021, the insolvency professional entity shall inform the Board, within thirty days of such joining;” (iii) in clause (ca), after the proviso, the following proviso shall be inserted, namely: - “Provided further that for the financial year 2020-2021, an insolvency professional entity shall pay the fee under this clause on or before the 30th June, 2021; and”. SUDHAKER SHUKLA, Whole-time Member [ADVT . III/4/Exty./49/2021-22] Note: The Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG003 dated 23rd November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 424 on 23rd November, 2016 and were subsequently amended by- (1) The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 published vide notification No. IBBI/2017-18/GN/REG027 dated 27th March, 2018 in Gazette of India, Extraordinary, Part III, Section 4, No. 125 on 28th March, 2018; (2) The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 published vide notification No. IBBI/2018-19/GN/REG036 dated 11th October 2018 in Gazette of India, Extraordinary, Part III, Section 4, No. 384 on 11th October, 2018;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] (3) The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2019 published vide notification No. IBBI/2019-20/GN/REG045 dated 23rd July 2019 in Gazette of India, Extraordinary, Part III, Section 4, No. 257 on 23rd July 2019; (4) The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2019 published vide notification No. IBBI/2019-20/GN/REG049 dated 25th October 2019 in Gazette of India, Extraordinary, Part III, Section 4, No.367 on 25th October 2019; (5) The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 published vide notification No. IBBI/2020-21/GN/REG057 dated 20th April, 2020 in Gazette of India, Extraordinary, Part III, Section 4, No. 154 on 24th April, 2020; and (6) The Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2020 published vide notification No. IBBI/2020-21/GN/REG061 dated 30th June, 2020 in Gazette of India, Extraordinary, Part III, Section 4, No. 238 on 1st July, 2020. 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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