SIMPLIFIED – Insolvency and Bankruptcy Board of India
SIMPLIFIED – ECONOMIC SURVEY OF INDIA
Dear Banking Aspirant ,
The Insolvency and Bankruptcy Board of India was set up on 1st October 2016 under the Insolvency and Bankruptcy Code, 2016 (Code). It is a unique regulator and regulates a profession as well as transactions. It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies and Information Utilities. It writes and enforces rules for transactions, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under the Code.
Insolvency and Bankruptcy Board of India is a key pillar of the ecosystem responsible for implementation of the Code that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
Why IBBI ?
Previously , The falling companies didn’t have the option of remaking and it was a hectic task and there was no ways for the reconstruction of that particular falling companies and this affected creditor’s interest and corporates interest and the companies never got any opportunity by repaying the creditors.
The Insolvency and Bankruptcy code provides the basic legal framework to facilitate resolution process of companies.
The new code will speed up the resolution process for stressed assets in the country. It attempts to simplify the process of insolvency and bankruptcy proceedings.
Responsibility of IBBI
- To create and amend laws relating to reorganization as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
- To create regulations for insolvency procedures, institutions and professionals. So far, the IBBI has produced three sets of regulations. These include – regulations for Insolvency Professionals, Insolvency Agencies and Model Bye-Laws and Governing Board of Insolvency Professional Agencies.
- To create a complete framework for the voluntary liquidation of any corporate person. The term corporate person includes any company incorporated under the Companies Act and includes limited liability partnership or any other person incorporated with limited liability but does not include any financial service provider.
- To specify the procedure for public announcement, receipt and verification of claims of stakeholders, reports and registers to be maintained and submitted by the liquidator, realization of assets and distribution of proceeds to stakeholders, distribution of residual assets, and finally dissolution of corporate person.
Organizational structure of IBBI
Total Members : 10 (Including The Chairman)
Structure of IBBI
- One Chairperson
- Three members from Central Government officers not below the rank of Joint Secretary or equivalent.
- One nominated member from the RBI.
- Five members nominated by the Central Government; of these, three shall be whole-time members.
IMPORTANT TAKEAWAYS :
Setup on : 1st October 2016
Act : Insolvency and Bankruptcy Code, 2016
Regulates : Profession & Transactions
Chairperson of IBBI : Dr. M. S. Sahoo