IBBI amends insolvency norms for corporate persons

New Delhi, Nov 29 (KNN) The Insolvency and Bankruptcy Board of India (IBBI) has amended the regulations for insolvency process of corporate persons with effect from Thursday. 

The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2019 on November 28, 2019.

Some of the amendments made by these Regulations are consequential to the Insolvency and Bankruptcy Code (Amendment) Act, 2019, which came into force on 5th August, 2019, according to an official release by the Ministry of Corporate Affairs.

The Insolvency and Bankruptcy Code, 2016 (Code) envisages corporate insolvency resolution process (CIRP) for reorganisation and insolvency resolution of corporate debtors.  An insolvency professional conducts the CIRP and manages its operations during the CIRP.

The new norms require IBBI and IPA to monitor the performance of IPs, and to collect, maintain and disseminate information and records relating to the insolvency process of corporate debtors.

IBBI has amended the CIRP regulations to specify that an IP would be liable to action permissible under the IBC, including refusal to issue or renew Authorisation for Assignment, for failure to file a form or for inaccurate or delayed filing.

The Amendment Regulations come into force from 28th November 2019. They are available at www.mca.gov.in and www.ibbi.gov.in.

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