Insolvency mechanism

The Insolvency Professional Agencies meeting chaired by Jaitley, in New Delhi on November 28, 2016.

The government has taken a new initiative by setting-up a modern insolvency mechanism based on the best practices in the world, Union Minister of Finance and Corporate Affairs Arun Jaitley said.

The government hopes that it will deliver the desired results and hands-over the Certificates of Registration to these Insolvency Professional Agency (IPA) companies, said Jaitley, adding that the process of setting-up of an insolvency mechanisam including setting-up of the Insolvency and Bankruptcy Board of India (IBBI) was done by the government in the shortest possible time.

Jaitley, who is also the Finance and Corporate Affairs Minister, was speaking at the function organized by the Insolvency and Bankruptcy Board of India (IBBI) in New Delhi on 28 November 2016 and gave away the Certificates of Registration to two Insolvency Professional Agency (IPA) companies.

There are lot of expectations from this new insolvency mechanism, he added.

An Insolvency Professional Agency is a front line regulator for the insolvency professionals. It enrolls professional members, lays down standards of professional conduct for them and monitors their performance. It also redresses the grievances of consumers against its members.

The Insolvency and Bankruptcy Board of India (IBBI) has granted registration to the following two Section 8 (not-for-profit) companies to act as insolvency professional agencies (IPAs) under the IBBI (Insolvency Professional Agencies) Regulations, 2016:

a. Indian Institute of Insolvency Professionals of ICAI, and

b. ICSI Insolvency Professionals Agency.

With the notification of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, the IPAs can start enrolling the professional members from 29th November, 2016. This takes one step closer to implementation of the Insolvency and Bankruptcy Code, 2016. fii-news.com