Insolvency regulator IBBI has rescinded as many as 11 circulars that were on review found to be no longer required as they were already provided in other regulations.
The 11 circulars related to diverse issues to facilitate insolvency professionals to carry out processes under the Insolvency and Bankruptcy Code (IBC).
These circulars covered topics such as use of registration number; IPs not to outsource its responsibilities; Fees payable to IPs and to other professionals appointed by the IP; disclosures by IPs and other professionals appointed by IPs conducting resolution processes; confidentiality of information relating to processes under the IBC; surrender of membership; annual compliance certificates for Insolvency Professional Agencies and monetary penalties to be imposed by an Insolvency Professional Agency.
EXPERTS’ TAKE
Yogendra Aldak, Partner, Lakshmikumaran and Sridharan Attorneys, said IBBI’s attempt to avoid multiplicity of guidelines and more importantly any conflict between regulations and circulars operating in similar fields will reduce possibility of conflict, if any, between regulations and circulars.
“With this, Tribunals’ time will be saved to a great extent and will result in faster insolvency resolution process. Further, the Insolvency Professionals can now comply basis the regulations and their focused approach will save time which can further be spent better in effective insolvency resolution process,” Aldak said.
Neha Naik, Associate Partner, Phoenix Legal, said the latest move would do away with the dependence on these 11 circulars and remove ambiguity as the Statute now provides for those aspects directly.