IBBI amends the Insolvency Professionals Regulations, 2016

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IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Professionals)
Regulations, 2016

The Insolvency and Bankruptcy Board of India (Board) has notified the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018 today.

2. The salient amendments are:

a. An insolvency professional shall pay to the Board, a fee calculated at the rate of 0.25 percent 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;

b. An eligible person seeking recognition as an insolvency professional entity shall pay an application fee of fifty thousand rupees along with the application for recognition;

c. An insolvency professional entity shall pay to the Board, a fee calculated at the rate of 0.25 percent of the turnover from the services rendered by it in the preceding financial year, on or before the 30th of April every year;

d. An insolvency professional entity shall inform the Board, within seven days, when an individual ceases or joins as its director or partner, as the case may be, along with a fee of two thousand rupees;

e. A delay in payment of fee by an insolvency professional or an insolvency professional entity will attract a simple interest at the rate of 12 percent per annum on the amount of fee unpaid, without prejudice to any other action which the Board may take as deemed fit under the Code or any regulations made thereunder.

3. The amendment regulations are effective from 11th October, 2018. These are available
at http://www.mca.gov.in and http://www.ibbi.gov.in.

(SOurce : IBBI- No. IBBI/PR/2018/30 dt. 11.10.2018).

Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second
Amendment) Regulations, 2018

11th October, 2018

IBBI/2018-19/GN/REG036. In exercise of the powers conferred by sections 196, 207 and 208 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, namely: –

1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2018.

(2) They shall come into force on the date of publication in the Official Gazette.

2. In the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (hereinafter referred to as the principal regulations), in regulation 7, in sub-regulation (2), for clause (c), the following clauses shall be substituted, namely: –

“(c) pay to the Board, a fee of ten thousand rupees, every five years after the year in which the certificate is granted and such fee shall be paid on or before the 30th April of the year it falls due;

Illustration

Where registration is granted on 2nd February, 2018 in the year 2017-18, the fee shall become due on 1st April, 2023, after five years (2018-19, 2019-20, 2020-21, 2021-22 and 2022-23) and it shall be paid on or before the 30th April, 2023.

(ca) pay to the Board, a fee calculated at the rate of 0.25 percent 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;”;

3. In the principal regulations, in regulation 12, for sub-regulation (2), the following subregulation shall be substituted, namely: –

“(2) A person eligible under sub-regulation (1) may make an application for recognition
as an insolvency professional entity to the Board in Form C of the Second Schedule along with an application fee of fifty thousand rupees.”.

4. In the principal regulations, in regulation 13, in sub-regulation (2), for clauses (b) and (c), the following clauses shall be substituted, namely: –

“(b) inform the Board, within seven 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 two thousand rupees;

(c) inform the Board, within seven 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 two thousand rupees;

(ca) pay to the Board, a fee calculated at the rate of 0.25 percent of the turnover from the services rendered by it in the preceding financial year, on or before the 30th of April every year, along with a statement in Form G of the Second Schedule; and”.

5. In the principal regulations, after regulation 14, the following regulation shall be inserted, namely: –

“15. Interest.- Without prejudice to any other action which the Board may take as deemed fit under the Code or any regulations made thereunder, any delay in payment of fee by an insolvency professional or an insolvency professional entity, a simple interest at the rate of 12% per annum on the amount of fee unpaid shall be paid to the Board after the last date of payment of fee under these regulations.”.

6. In the principal regulations, in the Second Schedule, after Form D, the following Forms shall be inserted, namely:

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