No person to function as an Insolvency Professional without Certificate of Registration
1. Section 3 (19) of the Insolvency and Bankruptcy Code, 2016 (Code) defines ‘insolvency professional’ to mean a person enrolled under section 206 with an insolvency professional agency (IPA) as its member and registered with the Insolvency and Bankruptcy Board of India (IBBI) as an insolvency professional (IP) under section 207.
2. In exercise of its powers under sections 196, 207 and 208 read with section 240 of the Code, the IBBI has made the IBBI (Insolvency Professionals) Regulations, 2016 (Regulations). The Regulations, inter alia, provide for registration, regulation and oversight of IPs. Under the Regulations, only three sets of persons are eligible for registration as IPs.
(a) chartered accountants, company secretaries, cost accountants, and advocates, who have been in practice for 15 years, were eligible to seek registration for limited period as IPs till 31st December, 2016;
(b) chartered accountants, company secretaries, cost accountants and advocates with 10 years’ of post-membership experience (practice or employment) and graduates with 15 years’ of post-qualification managerial experience are eligible for registration as IPs on passing the Limited Insolvency Examination;
and (c) any other person is eligible for registration as IP on passing the National Insolvency Examination. The Regulations provide for the code of conduct for IPs whereby IPs are required to inter alia adhere to timelines, maintain confidentiality, comply with the restrictions on employment and occupation and avoid conflict of interests.
June 13th, 2017