Important Facts For Prelims
Amendments in IBBI Regulations, 2017
- 17 Jun 2022
- 3 min read
Why in News?
Recently, the Insolvency and Bankruptcy Board of India has amended Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Inspection and Investigation) Regulations, 2017.
What are IBBI Regulations, 2017?
- Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017:
- It provides a mechanism for redressal of complaints and grievances filed against insolvency professionals, insolvency professional agencies and information utilities.
- Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017:
- It provides a mechanism for carrying out inspections and investigations on insolvency professional agencies, insolvency professionals and information utilities and passing orders by Disciplinary Committee.
What are the Key Highlights of the Amendment?
- About:
- Revisions in various timelines related to enforcement process provided in the (Grievance and Complaint Handling Procedure) Regulations, 2017 and (Inspection and Investigation) Regulations, 2017 for addressing the issue of delay in present mechanism.
- Effective participation of IPAs (Insolvency Professional Agency) in regulating the IPs (Insolvency Professional) through examination of grievances received against IPs.
- Intimation to Committee of Creditor (CoC)/ Adjudicating Authority (AA) about the outcome of Disciplinary Committee (DC) order.
- Reason for Amendment:
- To have expeditious redressal and also to avoid placing an undue burden on the service providers.
What is Insolvency and Bankruptcy Board of India?
- The Insolvency and Bankruptcy Board of India was established in 2016 under the Insolvency and Bankruptcy Code, 2016 (Code).
- It is a key pillar of the ecosystem responsible for implementation of the Code that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
- It is a unique regulator as it regulates a profession as well as processes.
- It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies, Insolvency Professional Entities and Information Utilities.
- It has also been designated as the ‘Authority’ under the Companies (Registered Valuers and Valuation Rules), 2017 for regulation and development of the profession of valuers in the country.
