Insolvency and Bankruptcy Board of India notifies two Regulations

New Delhi, Nov 23 (KNN) The Insolvency and Bankruptcy Board of India (IBBI)`has notified two regulations on Tuesday which inter alia provide for the eligibility norms to be a Professional Member of an Insolvency Professional Agency and also for eligibility norms to be registered with the IBBI as an Insolvency Professional Agency.

The Ministry of Finance today said in statement that IBBI, in exercise of its powers conferred under section 240 of the Insolvency and Bankruptcy Code, 2016, has notified the following two regulations: The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, and The Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016.

A company registered under Section 8 of the Companies Act, 2013 with a minimum net worth of Rs. 10 crore shall be eligible to be an Insolvency Professional Agency.

More than half of the Directors of its Board shall be independent directors and not more than one fourth of the Directors shall be insolvency professionals.

It shall have Membership Committee(s), Monitoring Committee, Grievance Redressal Committee(s), and Disciplinary Committee(s) for regulation and oversight of professional members.

These two regulations are available at www.mca.gov.in and www.ibbi.gov.in. (With PIB Inputs)