Putting in place the operational framework for insolvency and bankruptcy law, IBBI is being assisted by two advisory panels with inputs on various aspects, including on service providers and corporate liquidation. IBBI has been set up under the Insolvency and Bankruptcy Code that seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
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Pushing ahead with implementation of the Code, the Insolvency and Bankruptcy Board of India (IBBI) is gathering inputs from experts. In this regard, two high-level committees have been set up. The nine-member advisory committee on service providers is headed by educationist Mohandas Pai while the panel on corporate insolvency and liquidation is chaired by noted banker Uday Kotak.
Members of the panel on service providers include National Institute of Public Finance and Policy’s Professor Ajay N Shah, National Stock Exchange Vice-Chairman Ravi Narain, Sebi’s Executive Director J Ranganayakulu and senior lawyer Amarjit Singh Chandiok.
Apart from Kotak, other members of the committee on corporate insolvency and liquidation include BSE CEO Ashishkumar Chauhan, Credit Information Bureau Chairman M V Nair and Corporate and Economic Research Group Advisory’s Chairperson Omkar Goswami.
According to a senior official, both advisory committees have started deliberations on various matters. IBBI, which expects to soon operationalise the Code, has already notified three sets of regulations. These rules are for Insolvency Professionals, Insolvency Agencies and Model Bye-Laws and Governing Board of Insolvency Professional Agencies.
Subject to certain conditions, advocates, chartered accountants, company secretaries and cost accountants can serve as insolvency professionals while certain classes of not-for-profit companies can act as insolvency professional agencies.
A not-for-profit company, having minimum net worth of Rs 10 crore, will be eligible to be an insolvency professional agency. Such an entity will have membership, monitoring, grievance redressal and disciplinary committees to regulate as well as have an oversight of the professional members.
IBBI, chaired by M S Sahoo, will have 10 members. Apart from the chairman, there are now four government-nominated members. They are Additional Secretary at the finance ministry Ajay Tyagi, Joint Secretary at corporate affairs ministry Amardeep Singh Bhatia, law ministry Joint Secretary G S Yadav and RBI Legal Advisor Unnikrishnan A. The process of selection of three members are on and two others would be outside experts.