Insolvency and Bankruptcy Board Of India

The Insolvency and Bankruptcy Board of India (‘Board’), also known as the IBBI, was established on 1 October 2016 pursuant to the Bankruptcy and Bankruptcy Act 2016 (“IBC”). He is responsible for the implementation of the IBC. The IBC timely amends and consolidates laws relating to the resolution of bankruptcies of individuals, partner companies, and legal entities. 

The IBBI regulates both experts and processes. It carries out regulatory oversight of professional insolvency agencies, professional insolvency organizations, insolvency experts, and information services. Enforce rules for corporate liquidation, individual insolvency, corporate liquidation, and individual bankruptcy proceedings under the IBC.

Constitution Of The Board

The Board contains the following members appointed by the central government. 

A Chairperson. 

• Three members of the central government officials are below the joint secretary level. The three members will each represent ex officio the Ministry of Finance, the Department of Corporate Affairs, and the Department of Justice. 
• One member was appointed ex officio by the Reserve Bank of India (RBI). 
• Five other members were appointed by the central government, and three of them had to be standing members. 
• The Chairman and other members are integrity, ability, and standing, persons capable of resolving issues related to bankruptcy or insolvency and must have special knowledge and experience in finance, law, accounting, economics, or management. 
• The term of office of the Chairperson and members (excluding members of ex-officio) is 5 years or until the age of 65, whichever comes first, and can be reappointed. 

Powers and Functions Of The Board

• The Board exercises the power and functions transferred to him under  the IBC section 196 as follows: 
• General Functions of the Board
• Board performs all of the following functions in the general direction of the central government. 
• Promote the development and regulate the work of conventional experts practices, business professionals,  information programs, and other institutions.
• Levy prices or charges for carrying out the functions of the IBC, inclusive of charges for registration and renewal of the insolvency expert organizations, insolvency experts, and records utilities
• Specify policies and requirements for the functioning of the insolvency expert organizations, insolvency experts, and records utilities
• Lay down policies at the minimal curriculum of the exam of the insolvency experts for his or her enrolment as individuals to the insolvency expert organizations.
• Carry out inspections, and investigations, display the overall performance and audit the functioning of the insolvency expert organizations, insolvency experts, and records utilities and pass the required orders for compliance with the provisions of IBC and the policies.
• Call for any information and records from the insolvency expert organizations, insolvency experts and records utilities
• Publish research studies, records, information, and different records as designated with the aid of using the policies.
• Specify policies on the way of storing and accumulating information with the collecting data the records utilities and presenting get admission to such information
• Maintain and gather information and disseminate records referring to financial disaster and insolvency cases.
• Constitute such committees as required, inclusive of the committees laid down below Section 197 of IBC
• Promote excellent practices and transparency in Board governance.
• Maintain websites and different universally accessible important repositories of digital records.
• Enter right into a memorandum of understanding with different statutory authorities.
• Issue important suggestions to the insolvency experts, insolvency expert organizations, and records utilities.
• Specify mechanism for redressal of grievances in opposition to the insolvency experts, insolvency expert organizations, and records utilities and pass orders referring to the proceedings filed in opposition to them for compliance with the provisions of the IBC and the policies.
• Specify mechanisms to issue regulations, inclusive of the behavior of public session processes, earlier than notifying any policies.
• Make strategies and policies on topics referring to financial disaster and insolvency required below the IBC, inclusive of the mechanism for time-certain disposal of the belongings of the company debtor/debtor