The Insolvency and Bankruptcy Board of India ( IBBI ) has issued guidelines to be followed while appointing Insolvency Professionals as Administrators under the Securities Exchange Board of India (SEBI).
The IBBI and the SEBI have mutually agreed upon to use a Panel of IPs for appointment as Administrators for effective implementation of the Regulations. The IBBI shall prepare a Panel of IPs keeping in view the requirements of SEBI and the Regulations and the SEBI shall appoint the IPs from the Panel as Administrators, as per its requirement in accordance with the Regulations. A Panel shall be valid for six months and a new Panel will replace the earlier Panel every six months. For example, the first panel under these Guidelines will be valid for appointments during April – September, 2019, the next panel will be valid for appointments during October- March, 2020, and so on.
An IP will be ineligible to be included in the Panel of the IPs if any disciplinary proceedings are pending against him or he has been convicted by any Court of in the last three years or he expresses his interest to be included in the Panel for the relevant period; and he undertakes to discharge the responsibility as an Administrator, as and when he may be appointed by the SEBI.
The IBBI shall invite expression of interest from IPs in Form A to act as Administrator by sending an e-mail to IPs at their email addresses registered with it. The expression of interest must be received by the IBBI in Form A by the specified date. For example, the IBBI shall invite expression of interest by 26th March, 2019 from IPs for inclusion in the Panel for April – September, 2019. The interested IPs shall express their interest by 2 nd April, 2019. The IBBI will send the Panel to SEBI by 9th April, 2019.
It must be explicitly understood that an IP, who is included in the Panel based on his expression of interest, must not: (a) withdraw his interest to act Administrator; or (b) decline to act as Administrator, if appointed by SEBI; or (c) surrender his registration to the IBBI or membership to his IPA, during the validity of the Panel.
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