IBBI (Insolvency Professionals) (Third Amendment) Regulations, 2022 – IBBI Notification No. IBBI/2022-23/GN/REG97 dated 20.09.2022

Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Third Amendment) Regulations, 2022

THE GAZETTE OF INDIA
EXTRAORDINARY
PART III, SECTION 4
PUBLISHED BY AUTHORITY
NEW DELHI, TUESDAY, SEPTEMBER 20, 2022
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 20th September 2022

No. IBBI/2022-23/GN/REG97.- 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) (Third Amendment) Regulations, 2022.

(2) They shall come into force with effect from 1st October, 2022.

2. In the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (hereinafter referred to as ‘the principal regulations’), in regulation 6, in sub-regulation (1), for the words “ten”, the words “twenty” shall be substituted.

3. In the principal regulations, in regulation 7, in sub-regulation (2),

(a) for clause (c), the following shall be substituted, namely:-

“(c) pay to the Board, a fee of twenty thousand rupees, in case the insolvency professional is an individual or a fee of two lakh rupees, in case the insolvency professional is an insolvency professional entity, 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, 2022 in the year 2021-22, the fee shall become due on 1st April, 2027, after five years (2022-23, 2023-24, 2024-25, 2025-26 and 2026-27) and it shall be paid on or before the 30th April, 2027.”

(b) in clause (ca),

(i) for the decimal, number and word “0.25 percent”, words “one per cent.” shall be substituted.

(ii) after second proviso, the following shall be inserted, namely:-

“Provided further that where the insolvency professional is an insolvency professional entity, it shall pay to the Board, a fee calculated at the rate of one per cent. of professional fee earned for the services rendered as an insolvency professional in the preceding financial year on or before the 30th day of April every year, along with a statement in Form G of the Second Schedule.”

(c) after clause (ca), the following sub-clause shall be inserted, namely:-

“(cb) pay to the Board, a fee specified under sub-regulation (2) of regulation 31A of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, within a period of thirty days, after end of each quarter or upon closure of the processes whichever is earlier, along with a statement in Form EA of the Second Schedule.

Explanation: “quarter” means the period of three months commencing on the first day of January. April, July or October of a financial year.”

4. In the principal regulations, in regulation 12, in sub-regulation (2), for the words “fifty thousand”, the words “two lakh” shall be substituted.

5. In the principal regulations, in regulation 13, in sub-regulation (2), in clause (ca),

(i) for the decimal, number and word “0.25 percent”, the words “one per cent.” shall be substituted.

(ii) after second proviso, the following proviso shall be inserted, namely:-

“Provided further that in case the insolvency professional entity is registered as an insolvency professional, the services for the purpose of this sub-regulation shall not include the services rendered as an insolvency professional provided under third proviso to clause (ca) of sub-regulation (2) of regulation 7.”

6. In the principal regulations, in the Second Schedule,

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