The Securities and Exchange Board of India (SEBI) set guidelines to facilitate the appointment of Insolvency Professionals (IPs) as Administrators for the purposes specified. 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 guidelines 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.
An IP will be eligible to be included in the Panel of the IPs if :
- a) There is no disciplinary proceeding, whether initiated by the IBBI or the IPA of which he is a member, pending against him.
- b) He has not been convicted at any time in the last three years by a court of competent jurisdiction
- c) He expresses his interest to be included in the Panel for the relevant period and
- d) He undertakes to discharge the responsibility as an Administrator, as and when he may be appointed by the SEBI.
- e) He has made the compliance under Regulation 7(2) (ca) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 for the year 2018-19
- f) He holds an authorization for Assignment (AFA), which is valid on the date of expression of interest and remains valid till the validity of the panel.
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 and hosting the guidelines on its website. The expression of interest must be received by the IBBI in Form A by the specified date.
It must be explicitly understood that an IP, who is included in the Panel based on his expression of interest, must not withdraw his interest to act Administrator or decline to act as Administrator, if appointed by SEBI or surrender his registration to the IBBI or membership or AFA to his IPA during the validity of the Panel.
It must also be explicitly understood that an IP in the Panel will be appointed as Administrator, at the sole discretion of SEBI guidelines and the submission of expression of interest is an unconditional consent by the IP to act as Administrator in accordance with the Regulations and an IP who declines to act as Administrator, on being appointed by SEBI, shall not be included in the Panel for the next five years, without prejudice to any other action that may be taken by the IBBI.
The IBBI shall include the IPs, who have expressed their interest, in the Panel based on the three parameters the weights of which are as under number of Ongoing Processes is 40% and Number of Completed Processes as IRP/RP is 20% and the number of Completed Processes as Liquidator / Bankruptcy Trustee is 40%.
The IP, who has the lowest volume of ongoing processes, will get a score of 100. The IP who has the highest volume of ongoing processes will get a score of 0. The difference between the highest volume and the lowest volume will be equated to 100 and other IPs will get scores between 0 and 100 depending on the volume of their ongoing processes.
The IP, who has the highest experience of the resolution, will get a score of 100. The IP who has the least experience will get a score of 0. The difference between the highest and the lowest experience will be equated to 100 and other IPs will get scores between 0 and 100 depending on their experience.
The IP, who has the highest experience of liquidation and bankruptcy, will get a score of 100. The IP, who has the least experience, will get a score of 0. The difference between the highest and the lowest experience will be equated to 100 and other IPs will get a score between 0 and 100 depending on their experience.
The IP with a higher score will be placed above the IP securing a lower score. Further. where two or more IPs get the same score, they will be placed in the Panel in order of the date of their registration with the IBBI. The IP registered earlier will be placed above the IP registered later.
The SEBI Guidelines shall come into effect for appointments as Administrator with effect from 1st April 2020.To Read the full text of the Guidelines CLICK HERE