Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Second Amendment) Regulations, 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-
   (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)

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:

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.

Notification

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