Insolvency and Bankruptcy Board of India notifies IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2023 [Read Notification]

The Insolvency and Bankruptcy Board of India (IBBI) vide notification No. IBBI/2023-24/GN/REG105 issued on 19th September 2023 has notified the Insolvency and Bankruptcy Board of India  (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2023. The notification came into force on the same date of publication in the gazette.

In the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (hereinafter referred to as ‘the principal regulations’), in the Schedule :

(1) In para VI, in clause 10,

1. for sub-clause (1), the following shall be substituted, namely: –

“(1) An individual or an insolvency professional entity may apply for enrolment as a professional member by submitting an application in Part – I of Form A and Part – I of Form AA, respectively, of the Second Schedule to Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, in such manner and with such fees as may be specified by the Agency.”

2. in sub-clause (7), after the words “to these bye laws” the words “within sixty days of receipt of the application, excluding the time given for the purposes stated in clause (6)” shall be inserted,

(2) in para XI,

(i) for clause 29, the following shall be substituted, namely: –

“29. The Agency may refuse to accept the surrender of membership by any professional member if–

(1) there is grievance or disciplinary proceeding pending against it before the Agency or the Board;

(2) it does not comply with requirements, as on the date of application for surrender of professional membership with respect to-

1. payment of fee to the Board;
2. a disciplinary order issued by the Agency of the Board;
3. filings and disclosures to the Agency and the Board;
4. the arrangements made for the maintenance, preservation and transfer of records and other documents required to be maintained under the relevant regulations; and
5. any other requirements, as stipulated under the Code, rules made thereunder, regulations, circulars, directions, or guidelines issued by the Agency and the Board, from time to time.

(3) it has been appointed as an interim resolution professional, resolution professional, liquidator or authorised representative or bankruptcy trustee for a process under the Code, or the appointment of another insolvency professional may be detrimental to such process.”

(ii) For clause 30, the following shall be substituted namely:- “30. (1) A professional member shall be expelled by the Agency –

1. if it becomes ineligible to be enrolled under clause 9;
2. on expiry of thirty days from the order of the Disciplinary Committee, unless set aside or stayed by the Appellate Panel;
3. upon non-payment of professional membership fee despite at least two notices served in writing;
4. upon the cancellation of its certificate of registration by the Board;
5. upon the order of any court of law.

(2) While expelling the professional member, the Agency may take into account the factors provided in clause 29.”

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