{"id":1687,"date":"2021-01-25T09:56:02","date_gmt":"2021-01-25T09:56:02","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1687"},"modified":"2021-02-12T09:32:36","modified_gmt":"2021-02-12T09:32:36","slug":"model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/","title":{"rendered":"Model Bye-Laws and Governing Board of Insolvency Professional Agencies (Amendment) Regulations 2021 notified by IBBI"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the Insolvency and Bankruptcy Board of India, by way of powers conferred under section 196, 203, and 205, together with section 240 of the IBC 2016 has amended certain provisions of the Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations 2016. Further, the said amendment will be termed as Model Bye-Laws and Governing Board of Insolvency Professional Agencies (Amendment) Regulations 2021. The said rules will come into force from the date of publication in the official gazette, 14.01.2021.<\/p>\n\n\n\n<p>In this blog, we will discuss in detail\nabout the key changes bought through the Model Bye-Laws and Governing Board of\nInsolvency Professional Agencies (Amendment) Regulations 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa3d279564\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa3d279564\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Concept_of_Insolvency_and_Bankruptcy_Code_2016\" title=\"Concept\nof Insolvency and Bankruptcy Code 2016\">Concept\nof Insolvency and Bankruptcy Code 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Concept_of_Insolvency_Bankruptcy_Board_of_India\" title=\"Concept\nof Insolvency Bankruptcy Board of India\">Concept\nof Insolvency Bankruptcy Board of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Concept_of_Insolvency_Professional_Agency\" title=\"Concept\nof Insolvency Professional Agency \">Concept\nof Insolvency Professional Agency <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Changes_made_in_Model_Bye-Laws_and_Governing_Board_of_Insolvency_Professional_Agencies_Amendment_Regulations_2021\" title=\"Changes\nmade in Model Bye-Laws and Governing Board of Insolvency Professional Agencies\n(Amendment) Regulations 2021\">Changes\nmade in Model Bye-Laws and Governing Board of Insolvency Professional Agencies\n(Amendment) Regulations 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Amendments_Made_in_Regulation_5\" title=\"Amendments\nMade in Regulation 5\">Amendments\nMade in Regulation 5<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Insertion_of_Sub_Regulation_4A\" title=\"Insertion of Sub Regulation 4A\">Insertion of Sub Regulation 4A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Substitution_in_Clause_b_in_Sub_Regulation_6\" title=\"Substitution in Clause (b) in Sub Regulation 6\">Substitution in Clause (b) in Sub Regulation 6<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Insertion_of_Sub_Regulation_14\" title=\"Insertion of Sub Regulation 14\">Insertion of Sub Regulation 14<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Insertion_of_Regulation_6\" title=\"Insertion of Regulation 6\">Insertion of Regulation 6<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Insertion_of_Regulation_7\" title=\"Insertion of Regulation 7\">Insertion of Regulation 7<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Conclusion\" title=\"Conclusion \">Conclusion <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/model-bye-laws-and-governing-board-of-insolvency-professional-agencies-amendment-regulations-2021-notified-by-ibbi\/#Copy_of_the_Official_Notification\" title=\"Copy of the Official Notification\">Copy of the Official Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Insolvency_and_Bankruptcy_Code_2016\"><\/span><strong>Concept\nof Insolvency and Bankruptcy Code 2016<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having one codified legislation is better than to have multiple legislation to deal with different aspects of a company. In the same manner, the term Insolvency and Bankruptcy Code 2016 denotes comprehensive legislation that works as a single umbrella for the companies incorporated in India. Also, the same has repealed the provisions of SICA as well. The term SICA stands for Sick Industrial Companies Act. Further, the said act came into force on 28.05.2016.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Insolvency_Bankruptcy_Board_of_India\"><\/span><strong>Concept\nof Insolvency Bankruptcy Board of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Insolvency Bankruptcy Board of India or IBBI denotes a board formulated under the provisions of the Insolvency and Bankruptcy Code 2016. The said board is the topmost authority established under the act. Further, the same acts as the regulator for the companies as well.<\/p>\n\n\n\n<p>The main objective of this board is to\nachieve the goals and objectives of the Insolvency and Bankruptcy Code 2016.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Insolvency_Professional_Agency\"><\/span><strong>Concept\nof Insolvency Professional Agency <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term \u201cInsolvency Professional\nAgency\u201d means an agency established under the provisions of section 201 of the\nIBC 2016. The said agency is established with the Insolvency Bankruptcy Board\nof India under the Code. However, the same is administered and regulated by\nIBBI.<\/p>\n\n\n\n<p>Further, the key functions of the said\nagency are to regulate and administer the activities of the Insolvency\nProfessionals, and to ensure the development and growth in the industry as\nwell.<\/p>\n\n\n\n<p>Also, it is compulsory for these\nprofessionals to comply with the provisions of the IBC 2016, together with the\nterms and conditions specified under the Model Bye-Laws and Governing Board of\nInsolvency Professional Agencies Regulations 2016. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes_made_in_Model_Bye-Laws_and_Governing_Board_of_Insolvency_Professional_Agencies_Amendment_Regulations_2021\"><\/span><strong>Changes\nmade in Model Bye-Laws and Governing Board of Insolvency Professional Agencies\n(Amendment) Regulations 2021<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key changes made in the Model\nBye-laws and Governing Board of Insolvency Professional Agencies (Amendment)\nRegulations 2021 are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendments_Made_in_Regulation_5\"><\/span><strong>Amendments\nMade in Regulation 5<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The key amendments made in Regulation 5\nare as follows:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Sub_Regulation_4A\"><\/span><strong>Insertion of Sub Regulation 4A<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The said sub rule will be added after\nsub regulation 4 and states that to become a shareholder or director of\nInsolvency Professional Agency, one needs to fulfil the eligibility criteria\nnorms, comprising of qualification and experience, as decided by the Governing\nBoard.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_in_Clause_b_in_Sub_Regulation_6\"><\/span>Substitution in Clause (b) in Sub Regulation 6<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>IBBI or Insolvency and Bankruptcy Board\nof India has decided to substitute the explanation of clause (b) of sub\nregulation 6, which deals with the qualification for the directors of\nInsolvency Professional Agency, with the content as follows:<\/p>\n\n\n\n<p>(b) \u201cwho has expertise in the field of\nlaw, finance, accountancy, economics, valuation, insolvency or management.\u201d<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Sub_Regulation_14\"><\/span>Insertion of Sub Regulation 14<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The said sub rule will be added after sub regulation 13 and states that the director has the power to disclose any order given by any authority that affects his\/her reputation or character with the Insolvency Professional Agency. Further, the same must be done within one week from the date of issue of such order.<\/p>\n\n\n\n<p>However, such sub regulations have two\nprovisos which are as follows:<\/p>\n\n\n\n<ol><li>That\nthe copy of the order passed must be placed on the official portal of the Insolvency\nProfessional Agency;<\/li><li>That\nsuch a person will cease to be the director of the Insolvency Professional\nAgency, if the order disqualifies him to be the director of a company;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Regulation_6\"><\/span>Insertion of Regulation 6<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>IBBI or Insolvency and Bankruptcy Board\nof India has decided to insert a new regulation named Self Evaluation after the\nRegulation 5B. The said regulation states that the Governing Body has the power\nto evaluate the performance of the IPA (Insolvency Professional Agency) within\nthree months from the end of the financial year. Also, it is necessary for the IPA\nto publish a report of self evaluation on its website.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Regulation_7\"><\/span>Insertion of Regulation 7<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The last regulation inserted by the IBBI in the Model Bye-Laws and Governing Board of Insolvency Professional Agencies (Amendment) Regulations 2021 relates to Compliance Officer. As per the said regulation, the IPA or Insolvency Professional Agency needs to designate a compliance officer who will be responsible for ensuring the compliance of the provisions of the IBC and the regulations and guidelines made thereunder.<\/p>\n\n\n\n<p>Further, such a compliance officer will report to the <strong>IBBI<sup><a class=\"text-primary\" href=\"https:\/\/www.ibbi.gov.in\/\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> <\/strong>in case of any non-compliance or violation. Also, it is mandatory for the appointed compliance officer to submit a certificate of compliance with the Board on an annual basis. However, the same will be furnished only, if the compliance officer is satisfied that the Insolvency Professional Agency has duly complied with all the provisions mentioned under sub rule (1). Also, it shall be taken into consideration that the said certificate needs to be signed by the Managing Director of Insolvency Professional Agency on a compulsory basis.<\/p>\n\n\n\n<p>Lastly, only the Governing Body has the\npower to remove the appointed Compliance Officer, that, too by passing a\nresolution in the Meeting.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, Insolvency Professional Agency is an agency established under the provisions of section 201 of the IBC 2016. The same is administered by IBBI. Further, the main functions of IPA include administration of the working of Insolvency Professionals. Further, the main reason behind the amendment made in the Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations 2016 was to infuse more transparency and clarity in the operations, management, and affairs of the Insolvency Professional Agency. <\/p>\n\n\n\n<p>Also,\nthe said amended rules will now be known as Model Bye-Laws and Governing Board\nof Insolvency Professional Agencies (Amendment) Regulations 2021. <\/p>\n\n\n\n<p>Lastly, in case of any other doubt or dilemma, reach out to <strong><a href=\"https:\/\/swaritadvisors.com\/contact-us\" class=\"text-primary\">Swarit Advisors<\/a><\/strong>, our proficient and experienced CAs and CSs are there to cater to all your doubts and queries.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/major-risks-faced-by-micro-finance-company-in-india\/\">What are the Major Risks Faced by Micro Finance Company in India?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Copy_of_the_Official_Notification\"><\/span>Copy of the Official Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3ccd0abc46e45d76825111df474a9eee.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">3ccd0abc46e45d76825111df474a9eee<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Insolvency and Bankruptcy Board of India, by way of powers conferred under section 196, 203, and 205, together with section 240 of the IBC 2016 has amended certain provisions of the Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations 2016. Further, the said amendment will be termed as Model Bye-Laws and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1689,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50],"tags":[376],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1687"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1687"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1687\/revisions"}],"predecessor-version":[{"id":1692,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1687\/revisions\/1692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1689"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}