IBBI comes out with new regulations with respect of IRPs for hiring professionals

Jul 22 2021 08:28 AM
IBBI comes out with new regulations with respect of IRPs for hiring professionals

The Insolvency and Bankruptcy Board of India (IBBI) has come out with new regulations with respect of the insolvency resolution process for corporate persons that empower insolvency resolution professionals (IRPs) to hire the services of professionals to help conduct complex resolution processes.

The changes, made by amending the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, has also made RPs responsible for finding out if a corporate debtor (CD) has been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications in a timebound manner with the Adjudicating Authority seeking appropriate relief.

The amendment also requires an insolvency professional (IP) to disclose all former names and registered office address so changed in the two years preceding the commencement of insolvency of the CD, in all its communications and records. This will allow stakeholders, who may find it difficult to relate to the new name or registered office address, to participate in the resolution process.

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