The Insolvency and Bankruptcy Board of India ( IBBI ) has clarified the procedure for the compliance of regulation 13 (2) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.
The circular issued by the Board on 31st August clarified that failure on the part of an Insolvency Professional Entity to inform about the cessation of a Director/ Partner within the prescribed time would attract penalty.
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.
The Board 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.
The above information shall be provided by the authorized 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,” the Board said.
Subscribe Taxscan Premium to view the Judgment
