Insolvency Professional Entity to inform IBBI of cessation/joining of an IP as its Director/Partner

Insolvency Professional Entity to inform IBBI of cessation/joining of Insolvency Professional as its Director / Partner else face action 

Insolvency and Bankruptcy Board of India
7th Floor, Mayur Bhawan, Connaught Place, New Delhi-110001

CIRCULAR

No. IBBI/IPE/017/2018

31st August, 2018

To
All Recognised Insolvency Professional Entities
All Registered Insolvency Professionals

Subject: Compliance of regulation 13 (2) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Dear Madam / Sir,

An insolvency professional entity (IPE) is recognised by the Insolvency and Bankruptcy Board of India (Board) under Chapter V of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, subject to conditions specified under sub-regulation (2) of regulation 13, which reads as under:

“(2) The recognition shall be subject to the conditions that the insolvency professional entity shall-

(a) at all times continue to satisfy the requirements under Regulation 12;

(b) inform the Board, within seven days, when an insolvency professional ceases to be its director or partner, as the case may be;

(c) inform the Board, within seven days, when an insolvency professional joins as its director or partner, as the case may be; and

(d) abide by such other conditions as may be specified.”.

2. In view of the above, it is directed that an IPE shall inform the Board: –

(a) within seven days from the date when an insolvency professional ceases to be its director or partner or joins as its partner or director; and

(b) forthwith and in any case, not later than 7th September, 2018, if it has failed to inform any cessation or joining of an insolvency professional as its partner or director in the past.

3. The information, as required in Para 2 above, shall be provided by the authorised signatory of the IPE in the format provided in the Annexure by an email from the email address of the IPE registered with the Board to ipe@ibbi.gov.in. Failure to comply with the said requirement shall invite appropriate action, including withdrawal of recognition granted to an IPE.

4. This Circular is issued in exercise of powers under section 196 (1) (aa) of the Insolvency and Bankruptcy Code, 2016 read with sub-regulation (2) of regulation 13 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Sd/-
(Debajyoti Ray Chaudhuri)
Chief General Manager
Email: dr.chaudhuri@ibbi.gov.in