In light of recent amendments in the Insolvency and Bankruptcy Code (IBC) and the regulations, the Insolvency and Bankruptcy Board of India (IBBI) has rescinded a few circulars with immediate effect.
A circular issued by the IBBI today stated that “The Board conducted an exercise of review of regulations, circulars based on experience gained. It is observed that certain circulars are no longer required on account of being already provided in the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 [IP Regulation] or the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 [Model Bye-Laws Regulations] or the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 [IU Regulations], as the case may be.”
The circular rescinded including the circular as per which an IP shall not outsource any of his duties and responsibilities under the Code, the IBBI clarified that an IP shall render services for a fee which is a reasonable reflection of his work, raise bills / invoices in his name towards such fees, and such fees shall be paid to his bank account, etc.
“Accordingly, it has been decided to rescind circulars listed in the Annexure, with immediate effect. You are advised to take note of the above and follow the provisions of relevant Regulations,” the IBBI said.
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