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IBBI notifies three sets of regulations under Insolvency and Bankruptcy Code, 2016

IBBI notifies three sets of regulations under Insolvency and Bankruptcy Code, 2016
24 November 2016 Current Affairs: The Insolvency and Bankruptcy Board (IBBI) of India on 23 November 2016 notified three sets of regulations- (Insolvency Professional) Regulations, 2016; Regulations inter alia provide for registration, Regulation and oversight of insolvency professionals.

These regulations were notified under the Insolvency and Bankruptcy Code, 2016 and will come into effect from 29 November 2016. 

All these regulations provide for registration, regulation and oversight of insolvency professionals under the Code. 

Individuals eligible for registration as an insolvency professional

Advocates, Chartered Accountants, Company Secretaries and Cost Accountants with 10 years’ of practice or employment.

A Graduate with 15 years of post-qualification managerial experience on passing the Limited Insolvency Examination.

Any individual who has passed the National Insolvency Examination.

However, Advocates, Chartered Accountants, Company Secretaries and Cost Accountants with more than 15 years of practice experience can register without any examination till 31 December 2016 and such registration shall be valid for a limited period of six months.

There will be National Insolvency Examination and Limited Insolvency Examination. The syllabus and format of these examinations will be published on the website of the Board at least one month before the examination.

A limited liability partnership, a registered partnership firm or a company can be recognised as an insolvency professional entity if a majority of the partners or a majority of the whole-time directors are registered as insolvency professionals under the Code. 

An insolvency professional can use the organisational resources of a recognised insolvency professional entity subjected to the condition that the entity as well as the insolvency professional will be liable for all acts of omission or commission of its partners as insolvency professionals.

 


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