Date February 23, 2017
Regulations issued by Insolvency and Bankruptcy Board of India under the Insolvency Code

The Insolvency and Bankruptcy Board of India (IBBI) has through 3 (three) notifications dated 30 January 2017 issued following regulations under the Insolvency and Bankruptcy Code, 2016:

(i) IBBI (Advisory Committee) Regulations, 2017 (AC Regulations):
AC Regulations provide for IBBI’s power to constitute advisory committees to obtain expert advice for efficient discharge of its functions. IBBI may constitute advisory committees on service providers; corporate insolvency and liquidation; individual insolvency and bankruptcy; and such other subjects as IBBI may consider expedient. AC Regulations also provide for composition of such committees, rules of procedure for their meetings, fee payable to their members and so on.

(ii) IBBI (Procedure for Governing Board Meetings) Regulations, 2017 (BM Regulations):
BM Regulations inter alia provide for rules of procedure for meetings of members of IBBI, charter of conduct of members (including disclosure of interest, information of disqualification, declaration of fidelity, non-participation in decision if interested in the transacted business etc.), manner and form of execution of contracts on behalf of IBBI and affixation of common seal.

(iii) IBBI (Engagement of Research Associates and Consultants) Regulations, 2017 (RAC Regulations):
RAC Regulations empowers IBBI to engage research associates and consultants (RAC) for efficient discharge of its functions. RAC Regulations also provide for qualifications, experience and remuneration of such RAC, terms and conditions of their engagement, periodical evaluation of their performance and so on.

IBBI had previously issued the following 5 (five) regulations:

(i) IBBI (Liquidation Process) Regulations, 2016 (LP Regulations):
LP Regulations provide for details of activities under liquidation process. Such details inter alia include the manner and contents of public announcement, receipt and verification of claims of stakeholders, reports and registers to be maintained by the liquidator, manner of realisation of assets and security interest, and distribution of proceeds to stakeholders.

(ii) IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations):
CIRP Regulations provide for details of activities under corporate insolvency resolution process (CIRP). Such details inter alia include the manner and contents of public announcement, receipt and verification of claims of stakeholders, formation of committee of creditors, rules of procedure for meetings of committee of creditors, contents of information memorandum and resolution plan, implementation schedule of resolution plan, sale of unencumbered assets, components of resolution process costs, and scope of essential supplies.

Certain provisions relating to liquidator/ resolution professional

Per LP Regulations and CIRP Regulations, certain eligibility criteria of a liquidator/ resolution professional include (a) independence of insolvency professionals (IP) from corporate debtor; (b) disclosure of interest; and (c) prohibition on representing other stakeholders in same liquidation process/ CIRP by IPs of same IP entity.

(iii) IBBI (Insolvency Professionals) Regulations, 2016 (IP Regulations):
IP Regulations inter alia provide for registration, regulation and oversight of IPs. A limited liability partnership, a registered partnership firm or a company may be recognised as an IP entity subject to certain conditions. Per the code of conduct for IPs under IP Regulations, IPs are inter alia required to adhere to timelines, maintain confidentiality, comply with the restrictions on employment and occupation, and avoid conflict of interests.

(iv) IBBI (Insolvency Professional Agencies) Regulations, 2016 (IPA Regulations):
IPA Regulations provide for registration of insolvency professional agencies (IPA) with IBBI, and procedural aspects in this regard. Per IPA Regulations, a company registered under section 8 of the Companies Act, 2013 may be registered as an IPA subject to certain conditions.

(v) IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (Bye-Laws Regulations):
Bye-Laws Regulations provide for model bye-laws to be adopted by IPAs which inter alia include minimum standards of professional competence of the members of IPAs, standards for professional and ethical conduct of the members of IPAs, and requirements for enrolment of persons as members of IPAs. Per Bye-Laws Regulations, bye-laws of an IPA are required to be consistent with the model bye-laws.

IBBI is expected to issue soon the draft IBBI (Voluntary Liquidation) Regulations, 2017 and the draft IBBI (Information Utilities) Regulations, 2016.

The aforesaid regulations may be accessed at:

(i) AC Regulations: http://www.egazette.nic.in/WriteReadData/2017/173954.pdf

(ii) BM Regulations: http://www.egazette.nic.in/WriteReadData/2017/173953.pdf

(iii) RAC Regulations: http://www.egazette.nic.in/WriteReadData/2017/173951.pdf

(iv) LP Regulations: http://www.mca.gov.in/Ministry/pdf/IBBI_Regulations_19122016.pdf

(v) CIRP Regulations: http://www.mca.gov.in/Ministry/pdf/RegulationsRules_01122016.pdf

(vi) IP Regulations: http://www.mca.gov.in/Ministry/pdf/IBBIRegulation_25112016.pdf

(vii) IPA Regulations: http://www.mca.gov.in/Ministry/pdf/Notification_21112016_II.pdf

(viii) Bye-Laws Regulations: http://www.mca.gov.in/Ministry/pdf/Notification_21112016.pdf