The Insolvency and Bankruptcy Code, 2016 envisages the resolution of the corporate debtor in a time-bound manner to ensure the maximisation of the value of its assets. Considering the limitations on the part of an Insolvency Professional (IP), being an individual, in dealing with processes under the Code requiring concurrent efforts, and multi-disciplinary expertise, the Insolvency and Bankruptcy Board of India (IBBI) decided to institutionalise the profession of IP. To begin with, the Board has considered it appropriate to enable the Insolvency Professional Entity (IPE) recognised by the Board to carry on the activities of an IP.
Accordingly, the Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Fourth Amendment) Regulations, 2022 on 28th September 2022. The salient features of the amendments are as under:
An IPE, recognised by the Board, can seek registration as an IP with the Board, by making an application in the specified form along with a non-refundable application fee of two lakh rupees,
An IPE which is registered as an IP shall allow only its partner or director, as the case may be, who is an IP and holds a valid Authorisation For Assignment, to sign and act on its behalf of it.
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