IBBI (Insolvency Professionals) (Amendment) Regulations, 2020

Apr 02, 2020 | by Avantis RegTech Legal Research Team


Secretarial Compliance

The Insolvency and Bankruptcy Board of India (IBBI) on March 28, 2020, notifies the IBBI (Insolvency Professionals) (Amendment) Regulations, 2020 to further amend the IBBI (Insolvency Professionals) Regulations, 2016.

The amendments are made in the IBBI (Insolvency Professionals) Regulations, 2016 are:-

1.       In Regulation 7(2)(ca) related to “Certificate of registration” stating that the insolvency professional shall pay to the Board, a fee calculated at the rate of 0.25% of the professional fee earned for the services rendered by him as an insolvency professional in the preceding financial year, on or before the 30th of April every year, along with a statement in Form E of the Second Schedule. But for the financial year 2019-2020, an insolvency professional shall pay the fee under this clause on or before June 30, 2020.

2.       In Regulation 13(2)(b) related to “Recognition of Insolvency Professional Entities”, the insolvency professional entity shall inform the Board, within 7 days, when an individual ceases to be its director or partner, as the case may be, in Form F of the Second Schedule along with a fee of Rs. 2000/-. The insolvency professional entity shall inform the Board within 30 days of such cessation when an individual ceases to be its director or partner, on and from the date of commencement of the IBBI (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on December 31, 2020.

3.       In Regulation 13(2)(c), the insolvency professional entity shall inform the Board, within 7 days, when an individual joins as its director or partner, as the case may be, in Form F of the Second Schedule along with a fee of Rs. 2000/-. Provided that when an individual joins as its director or partner, then the insolvency professional entity shall inform the Board, within 30 days of such joining.

4.       In Regulation 13(2)(ca), the insolvency professional entity shall pay to the Board, a fee calculated at the rate of 0.25% of the turnover from the services rendered by it in the preceding financial year, on or before April 30 every year, along with a statement in Form G of the Second Schedule. Provided that for the financial year 2019-2020, an insolvency professional entity shall pay the fee under this clause on or before June 30, 2020.

These Notification shall come into force on March 28, 2020.

[Notification No. IBBI/2019-20/GN/REG057]


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