IBBI changes its norms to simplify registration of IPs

The Insolvency and Bankruptcy Board of India (IBBI) on Wednesday announced simplified enrolment and registration process for insolvency professionals to streamline their exit and compliance obligations.

The move is part of the broader efforts by authorities to expedite the insolvency resolution process and prevent erosion of stressed asset value.

Through the latest changes, the IBBI has introduced a common application form for both enrolment and registration processes. It has also set a timeline of 60 days for the approval of the unified application (for enrolment) by the insolvency professional agency (IPA) and of 30 days for forwarding the application (for registration) to the regulator.

“Additional requirements introduced for the IPA to consider while accepting application for surrender of professional membership or expelling the professional member,” the regulator said in a statement.

This includes compliance with respect to payment of fee to the board, disciplinary order issued by the IPA or the board, filings and disclosures to the IPA and the board, arrangements made for the maintenance, preservation and transfer of records and other documents required to be maintained under the relevant rules and regulations.

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