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INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (MODEL BYE- LAWS
AND GOVERNING BOARD OF INSOLVENCY PROFESSIONAL AGENCIES)
REGULATIONS, 20161
[Amended upto 31-10-2022]
IBBI/2016-17/GN/REG001.- 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, namely -
CHAPTER I
PRELIMINARY
Short title and commencement.
1.
(1) These Regulations may be called the Insolvency and Bankruptcy Board of India
(Model Bye-Laws and Governing Board of Insolvency Professional Agencies)
Regulations, 2016.
(2) These Regulations shall come into force on the date of their publication in the Official
Gazette.
Definitions.
2.
(1) In these Regulations, unless the context otherwise requires-
2[(a) “Board” means the Insolvency and Bankruptcy Board of India established
under section 188 of the Code;]
3[(aa) “Code” means the Insolvency and Bankruptcy Code, 2016 (31 of 2016);]
(b) “Governing Board” means the Board of Directors, as defined under section
2(10) of Companies Act, 2013 (18 of 2013), of the company registered as an
insolvency professional agency;
(c) “model bye-laws” means the model bye-laws as contained in the Schedule to
these Regulations.
1Vide Notification No. IBBI/2016-17/GN/REG001, dated 21st November, 2016, published in Gazette of India,
Extraordinary, Part III, Sec.4, vide No. 421, dated 22nd November, 2016 (w.e.f. 22.11.2016).
2 Inserted by Notification No. IBBI/2018-19/GN/REG35, dated 11th October, 2018 (w.e.f. 11-10-2018).
3 Renumbered by Notification No. IBBI/2018-19/GN/REG35, dated 11th October, 2018 (w.e.f. 11-10-2018).
Before renumbered, it stood as under:
“(a) “Code” means the Insolvency and Bankruptcy Code, 2016 (31 of 2016).”
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(2) Unless the context otherwise requires, words and expressions used and not defined in
these Regulations shall have the meanings assigned to them in the Code.
CHAPTER II
BYE LAWS
Insolvency professional agencies to have Bye-Laws.
3. (1) A company shall submit to the Board its bye-laws along with the application for its
registration as an insolvency professional agency.
(2) The bye-laws shall provide for all matters specified in the model bye-laws.
(3) The bye-laws shall at all times be consistent with the model bye-laws.
(4) The insolvency professional agency shall publish its bye-laws, the composition of all
committees formed, and all policies created under the bye-laws on its website.
Amendment of Bye-Laws.
4. (1) The Governing Board may amend the bye-laws by a resolution passed by votes in
favour being not less than three times the number of the votes, if any, cast against the
resolution, by the directors.
(2) A resolution passed in accordance with sub-regulation(1) shall be filed with the Board
within seven days from the date of its passing, for its approval.
(3) The amendments to the bye-laws shall come into effect on the seventh day of the
receipt of the approval, unless otherwise specified by the Board.
(4) The insolvency professional agency shall file a printed copy of the amended bye-laws
with the Board within fifteen days from the date when such amendment is made effective.
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CHAPTERIII
GOVERNING BOARD
Composition of the Governing Board.
4[5. Composition of the Governing Board.-(1) The Governing Board shall consist of-
(a) managing director;
(b) independent directors; and
(c) shareholder directors:
Provided that the Governing Board shall have minimum seven directors.
(2) The managing director shall not be considered either an independent director or a
shareholder director.
(3) Any employee of an insolvency professional agency may be appointed as a director on
its Governing Board in addition to the managing director, but such director shall be
deemed to be a shareholder director.
(4) More than half of the directors shall be persons resident in India at the time of their
appointment, and at all times during their tenure as directors.
5[(4A) A shareholder director shall be an individual, who satisfies the eligibility norms,
including experience and qualification, as decided by the Governing Board.]
4 Substituted by Notification No. IBBI/2018-19/GN/REG35, dated 11th October, 2018 (w.e.f. 11-10-2018).
Regulation 5, before substitution stood as under:
“5.(1) The Governing Board shall have a minimum of seven directors.
(2) More than half of the directors shall be persons resident in India at the time of their appointment, and
at all times during their tenure as directors.
(3) Not more than one fourth of the directors shall be insolvency professionals.
(4) More than half of the directors shall be independent directors at the time of their appointment, and at
all times during their tenure as directors:
Provided that no meeting of the Governing Board shall be held without the presence of at least one
independent director.
(5) An independent director shall be an individual-
(a) who is a person of ability and integrity;
(b) who has expertise in the field of finance, law, management or insolvency.
(c) who is not an insolvency professional;
(d) who is not a relative of the directors of the Governing Board;
(e) who had or has no pecuniary relationship with the insolvency professional agency, or any of its
directors, or any of its shareholders holding more than ten percent of its share capital, during the
two immediately preceding financial years or during the current financial year;
(f)
who is not a shareholder of the insolvency professional agency;
(g) who is not a member of a governing council of any of the shareholders holding more than ten percent
of the share capital of the insolvency professional agency; and
(6) The directors shall elect an independent director as the Chairperson of the Governing Board.
Explanation - For the purposes of this Regulation, any fraction contained in
‘more than half’ shall be rounded off to the next higher number; and
(a) ‘not more than one- fourth’ shall be rounded down to the next lower number.”
5Inserted by Notification No. IBBI/2020-2021/GN/REG068 dated 14th January, 2021 (w.e.f. 14-01-2021).
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(5) The number of independent directors shall not be less than the number of shareholder
directors:
Provided that no meeting of the Governing Board shall be held without the presence of
at least one independent director.
(6) An independent director shall be an individual-
(a) who is a person of ability and integrity;
6[(b) who has expertise in the field of finance, law, economics, accountancy, valuation,
management or insolvency;]
(c) who is not an insolvency professional;
(d) who is not a relative of the directors of the Governing Board;
(e) who had or has no pecuniary relationship with the insolvency professional agency,
or any of its directors, or any of its shareholders holding more than ten per cent. of its
share capital, during the immediately preceding two financial years or during the current
financial year;
(f) who is not a shareholder of the insolvency professional agency;
(g) who is not a member of the Board of Directors of any of the shareholders holding
more than ten percent. of the share capital of the insolvency professional agency.
(7) An independent director shall be nominated by the Board from amongst the list of
names proposed by the insolvency professional agency.
(8) An individual may serve as an independent director for a maximum of two terms of
three years each or part thereof, or up to the age of 7[seventy-five years], whichever is
earlier.
(9) The second term referred to in sub-regulation (8) may be subject to a satisfactory
performance review of the first term by the Governing Board.
(10) A cooling off period of three years shall be applicable for an independent director to
become a shareholder director in the same or another insolvency professional agency.
(11) Not more than one fourth of the directors shall be insolvency professionals.
(12) The directors shall elect an independent director as the Chairperson of the Governing
Board.
(13) A director, who has, any interest, direct or indirect, pecuniary or otherwise, in any
matter coming up for consideration at a meeting of the Governing Board or any of its
Committees, shall as soon as possible after relevant circumstances have come to his
knowledge, disclose the nature of his interest at such meeting and such disclosure shall
be recorded in the proceedings of the Governing Board or the Committee, as the case
may be, and the director shall not take part in any deliberation or decision of the
Governing Board or the Committee with respect to that matter.
6Substituted by Notification No. IBBI/2020-2021/GN/REG068 dated 14th January, 2021 (w.e.f. 14-01-2021). The
words before substitution stood as “who has expertise in the field of finance, law, management or insolvency;”
7Substituted by Notification No. IBBI/2019-20/GN/REG043 dated 23rd July, 2019 (w.e.f. 23-07-2019). The words
before substitution stood as “seventy years”.
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8[(14) A director shall disclose any order of any authority that affects his character or
reputation, to the insolvency professional agency, within one week of issue of such order:
Provided that a copy of the order shall be placed forthwith on the website of the
insolvency professional agency;
Provided further that such director shall forthwith cease to be a director of the insolvency
professional agency where the order disqualifies him to be a director of a company.]
5A. Managing director.-(1) An insolvency professional agency shall, subject to the
guidelines issued by the Board from time to time, determine the qualification and
experience, manner of appointment, terms and conditions of appointment and other
procedural formalities associated with the selection and appointment of the managing
director, subject to the condition that-
(a) an individual shall be selected as managing director through an open advertisement
in all editions of at least one national daily newspaper;
(b) an individual at the time joining as managing director shall not be above the age of
fifty-five years, which may be relaxed by the Governing Board up to sixty years, after
recording reasons therefor; and
(c) an individual shall not serve as managing director after he attains the age of sixty-five
years.
(2) The appointment of an individual as the managing director shall be for a tenure of not less
than three years but not exceeding five years.
(3) An individual may serve as managing director for a maximum of two terms.
(4) The process of appointment for the second term of an individual as managing director shall
be conducted afresh.
(5) The appointment and remuneration payable to the managing director shall be approved by
a compensation committee constituted by the Governing Board.
(6) The appointment, renewal of appointment and termination of service of the managing
director shall be subject to prior approval of the Board.
(7) The managing director shall be liable for removal or termination of services by the
Governing Board, with the prior approval of the Board, for failure to give effect to the directions,
guidelines and other orders issued by the Governing Board or the Board, or the rules, the articles
of association or bye-laws of the insolvency professional agency or on the ground of
misconduct or incapacity to continue in office.
(8) The Board may suo motu remove or terminate the services of the managing director, if it
deems fit, in the interest of stakeholders of the insolvency resolution process or in the public
interest, after giving a reasonable opportunity of being heard.
(9) The managing director shall be an ex-officio member of Membership Committee,
Monitoring Committee, Grievance Redressal Committee and Disciplinary Committee.
8Inserted by Notification No. IBBI/2020-2021/GN/REG068 dated 14th January, 2021 (w.e.f. 14-01-2021).
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5B. Compliance. -Every insolvency professional agency registered as on the date of
commencement of the Insolvency and Bankruptcy Board of India (Model Bye-Laws and
Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2018, shall
comply with regulations 5 and 5A within one year from the date of such commencement.]
9[6.Self-evaluation.
(1) The Governing Board shall evaluate its performance in a financial year within three months
of the closure of the year, in the manner decided by it.
(2) The insolvency professional agency shall publish a report on self-evaluation referred to in
sub-regulation (1) on its website.
7.Compliance Officer.
(1) An insolvency professional agency shall designate or appoint a compliance officer who
shall be responsible for ensuring compliance with the provisions of the Code and regulations,
circulars, guidelines, and directions issued thereunder.
(2) The compliance officer shall, immediately and independently, report to the Board any non-
compliance of the provisions referred to in sub-regulation (1).
10[(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.]
(4) The Governing Board shall appoint or remove the compliance officer only by means of a
resolution passed in its meeting.]
9 Inserted by Notification No. IBBI/Notification No. IBBI/2020-2021/GN/REG068 dated 14th January, 2021
(w.e.f. 14-01-2021).
10 Substituted by Notification No. IBBI/2022-23/GN/REG101 dated 31st October, 2022 (w.e.f. 31-10-2022). The
words before substitution stood as “(3) The compliance officer shall submit a compliance certificate to the Board
annually, 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.”.
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SCHEDULE
MODEL BYE-LAWS OF AN INSOLVENCY PROFESSIONAL AGENCY
[Under Regulation 3 read with Regulation 2(1)(c)]
I. GENERAL
1. The name of the Insolvency Professional Agency is “____” (hereinafter referred to as the
‘Agency’).
2. The Agency is registered as a company under section 8 of the Companies Act, 2013 with
its registered office situated at ______ [provide full address].
3. These bye-laws may not be amended, except in accordance with the Insolvency and
Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency
Professional Agencies) Regulations, 2016.
II. DEFINITIONS
4. (1) In these bye-laws, unless the context otherwise requires -
11[(a) “assignment” means any assignment of an insolvency professional as interim
resolution professional, resolution professional, liquidator, bankruptcy trustee,
authorised representative or in any other role under the Code;
(aa) “authorisation for assignment” means an authorisation to undertake an assignment,
issued by an insolvency professional agency to an insolvency professional, who is its
professional member, in accordance with its bye-laws;
(ab) “certificate of membership” means the certificate of membership of the Agency
granted under bye-law 10;]
(b) “Code” means the Insolvency and Bankruptcy Code, 2016 (31 of 2016);
(c) “Governing Board” means the Board of Directors of the Agency as defined under
section 2(10) of Companies Act, 2013 (18 of 2013);
(d) “professional member” means an insolvency professional who has been enrolled as
such, in accordance with Part VI of these bye-laws;
(e) “relative” shall have the same meaning as assigned to it in section 2(77) of the
Companies Act, 2013.
11Substituted by Notification No. IBBI/2019-20/GN/REG043, dated 23rd July, 2019 (w.e.f. 23-07-2019). Item (a),
before substitution stood as under:
‘(a) “certificate of membership” means the certificate of membership of the Agency granted under bye-law 10;’
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(2) Unless the context otherwise requires, words and expressions used and not defined in
these bye-laws shall have the meanings assigned to them in the Code.
III. OBJECTIVES
5. (1) The Agency shall carry on the functions of the insolvency professional agency under
the Code, and functions incidental thereto.
(2) The Agency shall not carry on any function other than those specified in sub-clause
(1), or which is inconsistent with the discharge of its functions as an insolvency
professional agency.
IV. DUTIES OF THE AGENCY
6. (1) The Agency shall maintain high ethical and professional standards in the regulation
of its professional members.
(2) The Agency shall -
(a) ensure compliance with the Code and rules, regulations and guidelines issued
thereunder governing the conduct of insolvency professional agencies and
insolvency professionals;
(b) employ fair, reasonable, just, and non-discriminatory practices for the enrolment
and regulation of its professional members;
(c) be accountable to the Board in relation to all bye-laws and directions issued to its
professional members;
(d) develop the profession of insolvency professionals;
(e) promote continuous professional development of its professional members;
(f) continuously improve upon its internal regulations and guidelines to ensure that
high standards of professional and ethical conduct are maintained by its
professional members; and
(g) provide information about its activities to the Board.
12[(3) The Agency shall-
12 Inserted by Notification No. IBBI/2022-23/GN/REG101 dated 31st October, 2022 (w.e.f. 31-10-2022).
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(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
profession
al / other
profession
al engaged
by the
insolvency
profession
al
Name
of
profess
ional
Professi
onal
member
ship
number
Per
man
ent
acco
unt
num
ber
(PA
N)
Relationship with
Inter
im
resol
ution
profe
ssion
al /
resol
ution
profe
ssion
al
Other
professio
nal
(registere
d valuer
/
accounta
nt /
advocate /
any other
profession
al)
Corpo
rate
debtor
Name
of
financi
al
credito
r (s)
Interi
m
financ
e
provid
er (s)
Name of
prospect
ive
resolutio
n
applican
t(s)
Interim
resolution
profession
al /
resolution
profession
al
NA
Registere
d valuer
NA
Accountan
t
NA
A
Advocate
NA
Any other
profession
al
(write
kind of
profession
)
NA
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.
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(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.]
V. COMMITTEES OF THE AGENCY
Advisory Committee of Professional Members.
7. (1) The Governing Board may form an Advisory Committee of professional members of
the Agency to advise it on any matters pertaining to-
(h) the development of the profession;
(i) standards of professional and ethical conduct; and
(j) best practices in respect of insolvency resolution, liquidation and bankruptcy.
(2) The Advisory Committee may meet at such places and times as the Governing Board
may provide.
Other Committees of the Agency.
8. (1) The Governing Board shall constitute-
(a) one or more Membership Committee(s) consisting of such members as it deems fit;
(b) a Monitoring Committee consisting of such members as it deems fit;
(c) one or more Grievance Redressal Committee(s), with not less than three members,
at least one of whom shall be a professional member of the Agency;
(d) one or more Disciplinary Committee(s) consisting of at least one member
nominated by the Board.
(2) The Chairperson of each of these Committees shall be an independent director of the
Agency.
VI. PROFESSIONAL MEMBERSHIP
Eligibility for Enrolment.
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9. (1) No individual shall be enrolled as a professional member if he is not eligible to be
registered as an insolvency professional with the Board:
Provided that the Governing Board may provide additional eligibility requirements for
enrolment:
Provided further that such additional requirements shall not discriminate on the grounds
of religion, race, caste, gender, place of birth or professional affiliation.
13[(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.]
Process of Enrolment as Professional Member.
10. (1) 14[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] may apply for enrolment as a professional member by
submitting an application in such form, in such manner and with such fees as may be
specified by the Agency.
(2) The Agency shall examine the application in accordance with the applicable
provisions of the Code, and rules, regulations and guidelines thereunder.
(3) On examination of the application, the Agency shall give an opportunity to the
applicant to remove the deficiencies, if any, in the application.
(4) The Agency may require an applicant to submit additional documents, information or
clarification that it deems fit, within reasonable time.
(5) The Agency may reject an application if the applicant does not satisfy the criteria for
enrolment or does not remove the deficiencies or submit additional documents or
information to its satisfaction, for reasons recorded in writing.
(6) The rejection of the application shall be communicated to the applicant stating the
reasons for such rejection, within thirty days of the receipt of the application, excluding
the time given for removing the deficiencies or presenting additional documents or
clarification by the Agency, as the case may be.
13 Inserted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022).
14 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “an individual”.
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(7) The acceptance of the application shall be communicated to the applicant, along with
a certificate of membership in Form A of the Annexure to these bye-laws.
(8) An applicant aggrieved of a decision rejecting 15[its]application may appeal to the
Membership Committee of the Agency within thirty days from the receipt of such
decision.
(9) The Membership Committee shall pass an order disposing of the appeal in the manner
it deems expedient, within thirty days of the receipt of the appeal.
Professional Membership Fee.
11. The Agency may require the professional members to pay a fixed sum of money as its
annual membership fee.
Register of Professional Members.
12. (1) The Agency shall maintain a register of its professional members, containing their-
(a) name;
(b) proof of identity;
(c) contact details;
(d) address;
(e) date of enrolment and professional membership number;
(f) date of registration with the Board and registration number;
16[(fa) date of issue, renewal, suspension, revocation of suspension, cancellation and
acceptance of surrender of authorisation for assignment and authorisation number;]
17[(fb) details of the partners or directors, as the case may be, where the professional
member is an insolvency professional entity,]
(g) details of grievances pending against 18[it] with the Agency;
15 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
16Inserted by Notification No. IBBI/2019-20/GN/REG043, dated 23rd July, 2019 (w.e.f. 23-07-2019).
17 Inserted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022).
18 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “him”.
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(h) details of disciplinary proceedings pending against 19[it] with the Agency; and
(i) details of orders passed against 20[it] by the Board or Disciplinary Committee of
the Agency.
(2) The records relating to a professional member shall be made available for inspection
to-
(a) the Board,
(b) the Adjudicating Authority,
(c) the committee of creditors in a corporate insolvency resolution process where the
professional member has been appointed as an interim resolution professional, or
(d) any other person who has obtained the consent of the member for such inspection.
21[12A. Authorisation for Assignment.
(1)The Agency, on an application by its professional member, may issue or renew an
authorisation for assignment.
(2)A professional member shall be eligible to obtain an authorisation for assignment, if
22[the professional member]-
(a) is registered with the Board as an insolvency professional;
(b) is a fit and proper person in terms of the Explanation to clause (g) of regulation 4
of the Insolvency and Bankruptcy Board of India (Insolvency Professionals)
Regulations, 2016;
(c) is not in employment;
(d) is not debarred by any direction or order of the Agency or the Board;
(e) has not attained the age of seventy years;
(f) has no disciplinary proceeding pending against 23[it] before the Agency or the
Board;
(g) complies with requirements, as on the date of application, with respect to-
(i) payment of fee to the Agency and the Board;
(ii) filings and disclosures to the Agency and the Board;
(iii) continuous professional education; and
19 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “him”.
20 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “him”.
21Inserted by Notification No. IBBI/2019-20/GN/REG043, dated 23rd July, 2019 (w.e.f. 23-07-2019).
22 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “he”.
23 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “him”.
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(iv) other requirements, as stipulated under the Code, regulations, circulars,
directions or guidelines issued by the Agency and the Board, from time to time.
24[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.]
(3)An application for issue or renewal of anauthorisation for assignment, shall be in such
form, manner and with such fee, as may be provided by the Agency:
Provided that an application for renewal of anauthorisation for assignment shall be made
any time before the date of expiry of the authorisation, but not earlier than forty-five
days before the date of expiry of the authorisation.
(4)The Agency shall consider the application in accordance with the bye-laws and either
issue or renew, as the case may be, an authorisation for assignment to the professional
member in Form B or reject the application with a reasoned order.
(5)If the authorisation for assignment is not issued, renewed or rejected by the Agency
within fifteen days of the date of receipt of application, the authorisation shall be
deemed to have been issued or renewed, as the case may be, by the Agency.
25[Provided that, for an application received on and from the date of commencement
of the Insolvency and Bankruptcy Board of India (Model Bye- Laws and Governing
Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020 and
ending on the 30th September 2020, if the authorisation for assignment is not issued,
renewed or rejected by the Agency within thirty days of the date of receipt of
application, the authorisation shall be deemed to have been issued or renewed, as the
case may be, by the Agency.]
26 [Provided further that, for an application received on and from the date of
commencement of the Insolvency and Bankruptcy Board of India (Model Bye-Laws
and Governing Board of Insolvency Professional Agencies) (Second Amendment)
Regulations, 2021 and ending on the 31st October 2021, if the authorisation for
assignment is not issued, renewed or rejected by the Agency within thirty days of the
date of receipt of application, the authorisation shall be deemed to have been issued
or renewed, as the case may be, by the Agency.]
(6)An authorisation for assignment issued or renewed by the Agency shall be valid for a
period of one year from the date of its issuance or renewal, as the case may be, or till
the date on which the professional member attains the age of seventy years, whichever
is earlier.
24 Inserted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022).
25Inserted by Notification No. IBBI/2020-21/GN/REG058, dated 20th April, 2020 (w.e.f. 28.03.2020).
26 Inserted by Notification No. IBBI/2021-22/GN/REG074, dated 27th April, 2021 (w.e.f. 27.04.2021).
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(7)An applicant aggrieved of an order of rejection of 27[its]application by the Agency
may appeal to the Membership Committee within 28[fifteen days] from the date of
receipt of the order.
29[Provided that, where an application for issue of authorisation for assignment has been
rejected by an insolvency professional agency, on and from the date of commencement
of the Insolvency and Bankruptcy Board of India (Model Bye- Laws and Governing
Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020 and
ending on the 30th September, 2020, the applicant aggrieved of an order of rejection
may appeal to the Membership Committee within thirty days from the date of receipt
of order.]
30[Provided further that, where an application for issue of authorisation for assignment
has been rejected by an insolvency professional agency, on and from the date of
commencement of the Insolvency and Bankruptcy Board of India (Model Bye-Laws
and Governing Board of Insolvency Professional Agencies) (Second Amendment)
Regulations, 2021 and ending on the 31st October, 2021, the applicant aggrieved of an
order of rejection may appeal to the Membership Committee within thirty days from
the date of receipt of order.]
(8)The Membership Committee shall pass an order disposing of the appeal by a reasoned
order, within fifteen days of the date of receipt of the appeal.]
VII.
DUTIES OF MEMBERS
13. (1) In the performance of 31[its] functions, a professional member shall-
(a) act in good faith in discharge of 32[its] duties as an insolvency professional;
(b) endeavour to maximize the value of assets of the debtor;
(c) discharge 33[its] functions with utmost integrity and objectivity;
(d) be independent and impartial;
27 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
28 Substituted by Notification No. IBBI/2021-22/GN/REG074, dated 27th April, 2021 (w.e.f. 27.04.2021). The
words before substitution stood as “seven days”.
29Inserted by Notification No. IBBI/2020-21/GN/REG058, dated 20th April, 2020 (w.e.f. 28.03.2020).
30 Inserted by Notification No. IBBI/2021-22/GN/REG074, dated 27th April, 2021 (w.e.f. 27.04.2021).
31 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
32 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
33 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
Page 16 of 25
(e) discharge 34[its] functions with the highest standards of professional competence
and professional ethics;
(f) continuously upgrade 35[its] professional expertise;
(g) perform duties as quickly and efficiently as reasonable, subject to the timelines
under the Code;
(h) comply with applicable laws in the performance of 36[its] functions; and
(i) maintain confidentiality of information obtained in the course of 37[its] professional
activities unless required to disclose such information by law.
14. The Agency shall have a Code of Conduct that shall be consistent with, and that shall
provide for all matters in the Code of Conduct as specified in the Insolvency and
Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
VIII. MONITORING OF MEMBERS
15. The Agency shall have a Monitoring Policy to monitor the professional activities and
conduct of professional members for their adherence to the provisions of the Code, rules,
regulations and guidelines issued thereunder, these bye-laws, the Code of Conduct and
directions given by the Governing Board.
16. A professional member shall submit information, including records of ongoing and
concluded engagements as an insolvency professional, in the manner and format
specified by the Agency, at least twice a year.
17. The Monitoring Committee shall review the information and records submitted by the
professional members in accordance with the Monitoring Policy.
18. The Monitoring Policy shall provide for the following -
(a) the frequency of monitoring;
(b) the manner and format of submission or collection of information and records of
the professional members, including by way of inspection;
34 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
35 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
36 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
37 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
Page 17 of 25
(c) the obligations of professional members to comply with the Monitoring Policy;
(d) the use, analysis and storage of information and records;
(e) evaluation of performance of members; and
(f) any other matters that may be specified by the Governing Board.
19. The Monitoring Policy shall –
(a) have due regard for the privacy of members,
(b) provide for confidentiality of information received, except when disclosure of
information is required by the Board or by law, and
(c) be non-discriminatory.
20. The Agency shall submit a report to the Board in the manner specified by the Board with
information collected during monitoring, including information pertaining to -
(a) the details of the appointments made under the Code,
(b) the
transactions
conducted
with
stakeholders
during
the
period
of
38[its]appointment;
(c) the transactions conducted with third parties during the period of 39 [its]
appointment; and
(d) the outcome of each appointment.
IX.
GRIEVANCE REDRESSAL MECHANISM
21. (1) The Agency shall have a Grievance Redressal Policy providing the procedure for
receiving, processing, redressing and disclosing grievances against the Agency or any
professional member of the Agency by-
(a) any professional member of the Agency;
(b) any person who has engaged the services of the concerned professional members
of the Agency; or
38 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
39 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
Page 18 of 25
(c) any other person or class of persons as may be provided by the Governing Board.
(2) The Grievance Redressal Committee, after examining the grievance, may-
(a) dismiss the grievance if it is devoid of merit; or
(b) initiate a mediation between parties for redressal of grievance.
(3) The Grievance Redressal Committee shall refer the matter to the Disciplinary
Committee, wherever the grievance warrants disciplinary action.
22. The Grievance Redressal Policy shall provide for-
(a) the format and manner for filing grievances;
(b) maximum time and format for acknowledging receipt of a grievance;
(c) maximum time for the disposal of the grievance by way of dismissal, reference to
the Disciplinary Committee or the initiation of mediation;
(d) details of the mediation mechanism
(e) provision of a report of the grievance and mediation proceedings to the parties to
the grievance upon dismissal or resolution of the grievance;
(f) action to be taken in case of malicious or false complaints;
(g) maintenance of a register of grievances made and resolutions arrived at; and
(h) periodic review of the Grievance Redressal Mechanism.
X.
DISCIPLINARY PROCEEDINGS
23. The Agency may initiate disciplinary proceedings by issuing a show-cause notice against
professional members-
(a) based on a reference made by the Grievances Redressal Committee;
(b) based on monitoring of professional members;
(c) following the directions given by the Board or any court of law; or
(d) suo moto, based on any information received by it.
Page 19 of 25
40[23A. The authorisation for assignment shall stand suspended upon initiation of disciplinary
proceedings by the Agency or by the Board, as the case may be.]
41 [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.]
24. (1) The Agency shall have a Disciplinary Policy, which shall provide for the following-
(a) the manner in which the Disciplinary Committee may ascertain facts;
(b) the issue of show-cause notice based on the facts;
(c) disposal of show-cause notice by a reasoned order, following principles of natural
justice;
(d) timelines for different stages of disposal of show cause notice; and
(e) rights and obligations of the parties to the proceedings.
(2) The orders that may be passed by the Disciplinary Committee shall include-
(a) expulsion of the professional member;
(b) suspension of the professional member for a certain period of time;
42[(ba) cancellation of authorisation for assignment;]
(c) admonishment of the professional member;
43[
(d) imposition of monetary penalty as per Table below:
Sl.
No.
Contravention
Monetary Penalty
1. Fails to submit disclosures, returns, etc. to
Agency or submits inadequate or incorrect
disclosures, returns, etc., relating to any
Up to ₹ 1,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 50,000.
40 Inserted by Notification No. IBBI/2019-20/GN/REG043, dated 23rd July, 2019 (w.e.f. 23-07-2019).
41 Inserted by Notification No. IBBI/2022-23/GN/REG101 dated 31st October, 2022 (w.e.f. 31-10-2022).
42 Inserted by Notification No. IBBI/2019-20/GN/REG043, dated 23rd July, 2019 (w.e.f. 23-07-2019).
43 Substituted by Notification No. IBBI/2022-23/GN/REG101 dated 31st October, 2022 (w.e.f. 31-10-2022).
Prior to substitution, it stood as “(d) imposition of monetary penalty;”
Page 20 of 25
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 the stakeholders.
Up to ₹ 2,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 1,00,000.
3. Fails to maintain records properly relating to
any of his assignments.
Up to ₹ 1,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 50,000.
4. Rejects a claim(s) without giving any proper
reason while undertaking an assignment or fails
to exercise due diligence in claim verification.
Up to ₹ 2,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 1,00,000.
5. Fails to comply with directions issued by
Adjudicating Authority or the Appellate
Authority.
Up to ₹ 2,00,000 or 25% of fee, whichever is
higher, 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, under the Code or Regulations made
thereunder, for conducting valuation.
Up to ₹ 2,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 1,00,000.
8. Fails to supply the information called for or to
comply with the requirements of information
sought by the Agency, Board, Adjudicating
Authority or the Appellate Authority or does
not
cooperate
with
the
inspection
or
investigating authority.
Up to ₹ 1,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 50,000.
9. Fails to make public announcement in the
manner
provided
for
in
the
relevant
Regulations.
Up to ₹ 2,00,000 or 25% of fee, whichever is
higher, 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 applicants.
Up to ₹ 2,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 1,00,000.
12. Fails to take action in respect of preferential,
undervalued, fraudulent or extortionate credit
transactions.
Up to ₹ 2,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 1,00,000.
13. Enters into contract or agreement with
professionals in an incomplete and improper
manner.
Up to ₹ 1,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 50,000.
14. Contravenes any provision of the bye-laws, or
regulations for which no specific penalty has
been provided.
Up to ₹ 1,00,000 or 25% of fee, whichever is
higher, subject to a minimum ₹ 50,000.
]
Page 21 of 25
(e) reference of the matter to the Board, which may include, in appropriate cases,
recommendation of the amount of restitution or compensation that may be enforced
by the Board; and
(f) directions relating to costs.
(3) The Disciplinary Committee may pass an order for expulsion of a professional
member if it has found that the professional member has committed-
(a) an offence under any law for the time being in force, punishable with imprisonment
for a term exceeding six months, or an offence involving moral turpitude;
(b) a gross violation of the Code, rules, regulations and guidelines issued thereunder,
bye-laws or directions given by the Governing Board which renders him not a fit
and proper person to continue acting as an insolvency professional.
Explanation: The violations referred to in sub-clause (b) include-
(i)
making a false representation or indulging in fraud for the purpose of
obtaining creditors’ approval under sections 28, 31, 111or153 of the Code;
(ii)
contravening provisions of the Code in a manner which is actionable in
accordance with sections 70(2) or 185 of the Code;
(iii)
knowingly or wilfully committing or authorizing or permitting contravention
of sections 14, 96, 101or 124 of the Code;
(iv)
contravening provisions of the Code inviting action in accordance with
sections 71 or 187 of the Code;
(v)
aiding or abetting any activity which is actionable in accordance with Chapter
VII of Part II or Chapter VII of Part III of the Code,
(vi)
providing unequal or differential treatment to the disadvantage of a party
which cannot be justified with reference to the interests of the insolvency
resolution, liquidation or bankruptcy process; or
(vii)
in any other case it deems fit.
(4) Any order passed by the Disciplinary Committee shall be placed on the website of the
Agency within seven days from passing of the said order, and a copy of the order shall
be provided to each of the parties to the proceeding.
Page 22 of 25
44 [(5) The Agency shall promptly realise the monetary penalty imposed by the
Disciplinary Committee and credit the same to the Fund constituted under section 222 of
the Code.]
25. (1) The Governing Board shall constitute an Appellate Panel consisting of one
independent director of the Agency, one member from amongst the persons of eminence
having experience in the field of law, and one member nominated by the Board.
(2) Any person aggrieved of an order of the Disciplinary Committee may prefer an appeal
before the Appellate Panel within thirty days from the receipt of a copy of the final order.
(3) The Appellate Panel shall dispose of the appeal in the manner it deems expedient,
within thirty days of the receipt of the appeal.
XI.
SURRENDER OF PROFESSIONAL MEMBERSHIP AND EXPULSION FROM
PROFESSIONAL MEMBERSHIP
45[Surrender of Authorisation for Assignment.
26. (1) A professional member shall make an application to surrender 46[its] authorisation
for assignment to the Agency at least thirty days before he-
44 Substituted by Notification No. IBBI/2021-22/GN/REG076, dated 22nd July, 2021 (w.e.f. 22-07-2021). Clause
24(5), before substitution, stood as under:
“(5) Monetary penalty received by the Agency under the orders of the Disciplinary Committee shall be credited
to the Insolvency and Bankruptcy Fund constituted under section 224 of the Code.”
45Substituted by Notification No. IBBI/2019-20/GN/REG043, dated 23rd July, 2019 (w.e.f. 23-07-2019). Clause
26, before substitution, stood as under:
“Temporary Surrender of Professional Membership.
26 (1) A professional member shall make an application for temporary surrender of his membership of
the Agency at least thirty days before he-
(a) becomes a person not resident in India;
(b) takes up employment; or
(c) starts any business, except as specifically permitted under the Code of Conduct;
and upon acceptance of such temporary surrender and on completion of thirty days from the date of
application for temporary surrender, the name of the professional member shall be temporarily struck from
the registers of the Agency, and the same shall be intimated to the Board.
(2) No application for temporary surrender of professional membership of the Agency shall be accepted if -
(a) there is a grievance or disciplinary proceeding pending against the professional member before the
Agency or the Board, and he has not given an undertaking to cooperate in such proceeding; or
(b) the professional member has been appointed as a resolution professional, liquidator or bankruptcy
trustee for a process under the Code, and the appointment of another insolvency professional may be
detrimental to such process.
(3) A professional member may make an application to revive his temporarily surrendered membership when
the conditions for temporary surrender as provided in sub-clause (1) cease to be applicable, and upon
acceptance of the application for revival, the name of the professional member shall be re-inserted in the
register of the Agency, and the same shall be intimated to the Board.”
46 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
Page 23 of 25
(a) becomes a person resident outside India;
(b) takes up an employment; or
(c) starts any business, except as specifically permitted under the Code of Conduct, and upon
acceptance of such surrender, the same shall be intimated to the Board by the Agency
within one working day of acceptance of surrender.
(2) No application for surrender of authorisation for assignments shall be accepted by the
Agency, if -
(a) the authorisation for assignment has been suspended;
(b) an assignment is continuing; or
(c) name of the professional member is included in any panel prepared by the Board for
undertaking assignment.]
27. Surrender of Professional Membership
(1) A professional member who wishes to surrender 47[its] membership of the Agency may
do so by submitting an application for surrender of 48[its] membership.
(2) Upon acceptance of such surrender of 49[its] membership, and completion of thirty
days from the date of such acceptance, the name of the professional member shall be
struck from the registers of the Agency, and the same shall be intimated to the Board.
28. Any fee that is due to the Agency from a professional member surrendering 50[its]
membership shall be cleared prior to 51[its] name being struck from the registers of the
Agency.
29. The Agency may refuse to accept the surrender of membership by any professional
member if-
(a) there is any grievance or disciplinary proceeding pending against the professional
member before the Agency or the Board; or
47 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
48 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
49 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
50 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
51 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
Page 24 of 25
(b) the professional member has been appointed as a resolution professional, liquidator
or bankruptcy trustee for a process under the Code, and the appointment of another
insolvency professional may be detrimental to such process.
Expulsion from Professional Membership.
30. A professional member shall be expelled by the Agency –
(a) if he becomes ineligible to be enrolled under bye-law9;
(b) on expiry of thirty days from the order of the Disciplinary Committee, unless set
aside or stayed by the Appellate Panel;
(c) upon non-payment of professional membership fee despite at least two notices
served in writing;
(d) upon the cancellation of 52[its] certificate of registration by the Board;
(e) upon the order of any court of law.
ANNEXURE
FORM A
CERTIFICATE OF PROFESSIONAL MEMBERSHIP
(Under bye-law 10of the Agency’s bye-laws)
No. ..........
1. This is to certify that [insert name] residing at [insert address] is enrolled as a
professional member of [insert name of insolvency professional agency]with
professional membership no. [insert number].
2. This certificate shall be valid from [insert date].
Sd/-
For and on behalf of [name of insolvency professional agency]
Place:
Date:
53[FORM B
AUTHORISATIONFOR ASSIGNMENT
52 Substituted by Notification No. IBBI/2022-23/GN/REG100 dated 3rd October, 2022 (w.e.f. 03-10-2022). The
words before substitution stood as “his”.
53Inserted by Notification No. IBBI/2019-20/GN/REG043, dated 23rd July, 2019 (w.e.f. 23-07-2019).
Page 25 of 25
(Under bye-law 12A of the Agency’s Bye-laws)
No. ..........
Date …………
This authorisation for assignment is issued to [insert name], who is enrolled as a professional
member of the [insert name of insolvency professional agency] with professional membership
no. [insert number] and registered with the Insolvency and Bankruptcy Board of India as an
insolvency professional with registration no. [insert number]under the Insolvency and
Bankruptcy Code, 2016.
2. This authorisation is valid from [insert date] to [insert date]. / This authorisation is renewed
on [insert date] and is valid till [insert date]. (Strike off if not applicable).
Sd/-
For and on behalf of [name of insolvency professional agency]
Place:……………..
Date:……………….]
