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Insolvency and Bankruptcy Board of India
7th Floor, Mayur Bhawan, Connaught Place, New Delhi - 110001
CIRCULAR
No. IBBI/IP/55/2022
9th November, 2022
To
All Registered Insolvency Professionals
All Recognised Insolvency Professional Entities
All Registered Insolvency Professional Agencies
The Registered Information Utility
(By mail to registered email addresses and on website of the IBBI)
Dear Sir/ Madam,
Subject: Review of Regulations
The Board had issued few circulars, from time to time, in exercise of powers under section 196
of the Insolvency and Bankruptcy Code, 2016 in order to facilitate Insolvency Professionals to
carry out processes under the Code.
2. The Board conducted an exercise of review of regulations, circulars based on experience
gained. It is observed that certain circulars are no longer required on account of being already
provided in the Insolvency and Bankruptcy Board of India (Insolvency Professionals)
Regulations, 2016 [IP Regulation] or the Insolvency and Bankruptcy Board of India (Model
Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016
[Model Bye-Laws Regulations] or the Insolvency and Bankruptcy Board of India (Information
Utilities) Regulations, 2017 [IU Regulations], as the case may be.
3. Accordingly, it has been decided to rescind circulars listed in the Annexure, with immediate
effect.
4. You are advised to take note of the above and follow the provisions of relevant Regulations.
5. The circular is issued with the approval of competent authority.
Yours sincerely,
Sd/-
(Dilip Arjun Khandale)
Deputy General Manager
Tel: 011-23462870
Email: dilip.khandale@ibbi.gov.in
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-// Annexure //-
Sl.
No.
Date of Issue
And Circular No.
Subject
Brief of Circular
Incorporation
1
No. IP/001/2018
Dated January 3,
2018
Use
of
Registration
Number etc.
An
IP
is
required
to
prominently state in all his
communications,
whether
by
way
of
public
announcement or otherwise
to a stakeholder or to an
authority,
his
name,
address, email, Registration
Number etc.
Clause 15A of ‘Code of
Conduct’
specified
in
First
Schedule to
IP
Regulations.
2
No. IP/002/2018
Dated January 3,
2018
IP
to
ensure
compliance
with provisions
of the applicable
laws.
IPs
were
directed
to
exercise reasonable care and
diligence
and
take
all
necessary steps to ensure
that the corporate person
undergoing
any
process
under the Code complies
with the applicable laws.
It was further clarified that
any loss, including penalty,
if any, because of non-
compliance of applicable
laws, shall not form part of
IRPC or liquidation process
cost under the Code.
Further,
IP
will
be
responsible for the non-
compliance of applicable
laws if it is because of his
conduct.
Clauses 27A and 27B of
‘Code
of
Conduct’
specified
in
First
Schedule
to
IP
Regulations.
3
No.
IP/003/2018
Dated January 3,
2018
IP
not
to
outsource
his
responsibilities.
It was directed that an IP
shall not outsource any of
his
duties
and
responsibilities under the
Code.
Already covered under
regulation 7 (2) (bb) of IP
Regulations.
4
No. IP/004/2018
Dated January 16,
2018
Fees payable to
IP and to other
professionals
appointed by the
IP
The IBBI clarified that an IP
shall render services for a
fee which is a reasonable
reflection of his work, raise
bills / invoices in his name
towards such fees, and such
fees shall be paid to his bank
account.
Part of the provisions
were
already
covered
under clauses 25, 25A, 26
and 27 of the ‘Code of
Conduct’
specified
in
First
Schedule to
IP
Regulations.
Clause 25B, 25C and 26A
of the ‘Code of Conduct’
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Sl.
No.
Date of Issue
And Circular No.
Subject
Brief of Circular
Incorporation
Any payment of fees for the
services of an IP to any
person, other than the IP,
shall not form part of the
IRPC.
Similarly,
any
other
professional
(such
as
registered valuer) appointed
by an IP shall raise bills /
invoices in his / its name
towards such fees, and such
fees shall be paid to his / its
bank account.
specified
in
First
Schedule
to
IP
Regulations
has
been
inserted.
5
No.
IP/005/2018
Dated January 16,
2018
Disclosures by
IPs and other
Professionals
appointed
by
IPs conducting
Resolution
Processes
It was directed that an IP
and every other professional
appointed by the IP for a
resolution
process
shall
make certain disclosures to
the IPA of which he is a
member within a stipulated
timeframe.
The IPA was required to
facilitate receipt of the
disclosures and disseminate
such disclosures on its
website within stipulated
timeframe.
Part of the provisions
already covered under
Regulation 40B of IBBI
(Insolvency
Resolution
Process
for Corporate
Persons)
Regulations,
2016 [CIRP Regulations].
Clauses 8A, 8B, 8C and
8D of the ‘Code of
Conduct’
specified
in
First
Schedule to
IP
Regulations have been
inserted.
Clause 6 (3) in Schedule
to the Model Bye Laws
Regulations have been
inserted.
6
No.
IP(CIRP)/007/2018
Dated February 23,
2018
Confidentiality
of information
relating
to
processes under
the Code
It was directed that an IP,
whether acting as IRP, RP
or Liquidator, except to the
extent provided in the Code
and Rules, Regulations or
Circulars issued thereunder,
(i)
shall
keep
every
information related to the
processes confidential; and
(ii) shall not disclose or
provide access to any such
information
to
any
unauthorised person.
Already covered in clause
21 of ‘Code of Conduct’
specified
in
First
Schedule
to
IP
Regulations.
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Sl.
No.
Date of Issue
And Circular No.
Subject
Brief of Circular
Incorporation
7
No.
IBBI/IP/021/2019
Dated May 2, 2019
Surrender
of
Membership
It was advised that an IPA
shall not ordinarily accept
temporary
surrender
of
professional
membership,
where the IP is conducting a
process under the Code.
Certain
forms
were
stipulated.
Already covered in IP
Regulations and Model
Bye-Laws Regulations.
With
introduction
of
Authorisation
for
Assignment, the issue of
temporary surrender has
become redundant. In this
regard, the Board has
issued clarification no.
IBBI/IP/2022 dated April
11, 2022
8
IPA/009/2018
Dated April 19,
2018
Annual
Compliance
Certificate
for
Insolvency
Professional
Agencies
Stipulations
regarding
annual
compliance
certificate to be submitted
by IPAs to IBBI were
issued.
Upon rescission of the
circular, revised circular
containing the format of
annual
compliance
certificate aligning with
latest Regulations, issued
vide
reference
no.
IBBI/IPA/54/2022 on 2nd
November, 2022 under
Regulation 7(3) of Model
Bye-Laws amended.
9
No.
IBBI/IPA/43/2021
Dated
July
28,
2021
Monetary
Penalties to be
imposed by an
Insolvency
Professional
Agency
It issued directions upon
IPAs to amend their Bye-
laws to provide for the
maximum and minimum
monetary
penalty,
in
stipulated circumstances.
Clause 24(2)(d) of the
schedule to the Model
Bye-Laws
Regulations
has been amended.
10
No: LA/010/2018
Dated April 23,
2018
Commencement
of Disciplinary
Proceeding
It was clarified that (i) a
disciplinary proceeding is
considered
as
pending
against an IP from the time
he has been issued a show
cause notice by IBBI till its
disposal by the disciplinary
committee; and (ii) an IP
who has been issued a show
cause notice shall not accept
any fresh assignment as
IRP, RP, liquidator, or a
bankruptcy trustee under the
Code.
Already
provided
in
clause
23A
of
the
schedule stipulated in the
Model
Bye-Laws
Regulations.
Explanation
has
been
inserted
to
aforesaid
clause.
11
No.
IBBI/IU/025/2019
Statutory
Repositories
under regulation
The MCA 21 database of
the Ministry of Corporate
Affairs and the Central
Regulation 21(2)(c)(ii) of
IU Regulations has been
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Sl.
No.
Date of Issue
And Circular No.
Subject
Brief of Circular
Incorporation
Dated September 7,
2019
21(2)(c)(ii)
of
the Insolvency
and Bankruptcy
Board of India
(Information
Utilities)
Regulations,
2017
Registry of Securitisation
Asset Reconstruction and
Security Interest of India
(CERSAI) registry were
approved as repositories for
the purposes of regulation
21(2)(c)(ii)
of
IU
Regulations.
amended to include the
provisions of the circular.
