Insolvency and Bankruptcy regulations amended to enhance focus on discipline, transparency and accountability

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The Insolvency and Bankruptcy Board of India (IBBI) has amended the insolvency and Bankruptcy regulations and the IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016 has been notified on 14th July, 2021. The regulations have been amended to augment focus on discipline, transparency and accountability when corporate insolvency proceedings are conducted.

According to the amended regulations an insolvency professional conducting corporate insolvency resolution process requires to disclose all former names and  registered office address that have been changed in the two years preceding the commencement of insolvency. The current name and registered office address of the corporate debtor that has been mentioned in all its records and communications are also required.

In discharge of his duties in conduct of Corporate Insolvency Resolution Process (CIRP) the interim resolution professional or the resolution professional may appoint any professional, including registered valuers to assist him. The resolution professional is duty bound to find out if a corporate debtor has been subject to avoidance

The IBBI has specified the format of CIRP 8 through a Circular and this form is required to be filed in respect of every CIRP ongoing or commencing on or after 14th July, 2021.

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