Insolvency and Bankruptcy Board (IBBI) of India notified two Regulations

insolvency-and-bankruptcy-board

Question: When was The Insolvency and Bankruptcy Board of India established?
a) October 1, 2016
b) April 1, 2015
c) April 1, 2016
d) November 8, 2016
Ans: (a)
Related facts:

  • On 22nd November, 2016 The Insolvency and Bankruptcy Board of India (IBBI), in exercise of its powers conferred under section 240 of the Insolvency and Bankruptcy Code, 2016, has notified two regulations.
  • These two regulations will come in to effect on 29th November, 2016. These are :

1- The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016

  • The Regulations is based on Insolvency and Bankruptcy Code, 2016. It mandates Insolvency professional agencies to have Bye-Laws, lays guidelines for Amendment of Bye-Laws and ascertains the composition of Governing Board. It also provides for formation of certain committees along with duties and monitoring of members of the agency. The Regulation also has provision for disciplinary proceeding against professional members.

2- The Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016

  • This regulation is also based on Insolvency and Bankruptcy Code, 2016. It provides for the Eligibility Criterion for registration as an insolvency professional agency and Grant of certificate of registration. It lays down the Procedure for rejecting application. This Regulation also has Surrender or cancellation of Registration and disciplinary proceeding clauses.
  • These two regulations inter alia provide for the eligibility norms to be a Professional Member of an Insolvency Professional Agency and also for eligibility norms to be registered with the IBBI as an Insolvency Professional Agency.
  • A company registered under Section 8 of the Companies Act, 2013 with a minimum net worth of Rs. 10 crore shall be eligible to be an Insolvency Professional Agency.
  • The implementation of these regulations will prove to be comprehensive and systemic reform, which will give a quantum leap to the functioning of the credit market.
  • It would take India from among relatively weak insolvency regimes to becoming one of the world’s best insolvency regimes. It lays the foundations for the development of the corporate bond market, which would finance the infrastructure projects of the future.
  • It is to be noted that The Insolvency and Bankruptcy Board of India was established on October 1, 2016 in accordance with the provisions of The Insolvency and Bankruptcy Code, 2016.

Reference:
http://www.ibbi.gov.in/
http://www.pib.nic.in/newsite/PrintRelease.aspx?relid=145286
http://pib.nic.in/newsite/PrintRelease.aspx?relid=154102