Bid to groom insolvency professionals in the works
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New Delhi: The government is planning to conduct a national insolvency programme to train insolvency professionals registered under the insolvency and bankruptcy code. The insolvency and bankruptcy board of India (IBBI) will organize a series of workshops to be conducted by industry experts, said a person familiar with the development.
Mint spoke to two people who confirmed that the board is organizing training sessions to groom the professionals from the beginning itself.
The workshop will commence from the first week of February in batches of 50- 60 for professionals who have cleared the limited insolvency exam and gained provisional registration, the above mentioned person said.
The limited insolvency examination was made available on 31 December 2016 across more than 100 locations, allowing practitioners to obtain provisional registration as insolvency professionals.
The bankruptcy code, passed by Parliament in May, envisages creating a complementary ecosystem, including insolvency professionals, information utilities and a bankruptcy regulator. The government made the IBBI operational and issued regulations under the code. It also notified rules empowering the National Company Law Tribunal to be the appropriate adjudicating authority to handle corporate insolvency matters and registered insolvency professionals and agencies under the code.
The government has also set up a working group to submit a report on registration of information utilities under the bankruptcy code. The report will be followed by a discussion paper, seeking public comments. Thereafter, the draft rules will be issued and information utilities will be registered. “It will take at least six months,” the person quoted above said.
The insolvency board is in the process of finalizing regulations for fast-track liquidation, which will complete the set of rules for corporate insolvency. The working group for fast -track liquidation is likely to hold a meeting on 17 January to discuss and finalize the rules.
What remain unaddressed are the provisions of the insolvency code pertaining to individual insolvency resolution, which was to be under the jurisdiction of the debt recovery tribunals. The government has not notified regulations for personal insolvency till now.
Rules for cross border insolvencies have also not been addressed by the government.
The IBBI, chaired by M.S. Sahoo, will have its next meeting on 16 January to discuss organizational matters of the board. At present, the bankruptcy board has four ex-officio members.
The government is in the process of appointing five more members, including three full-time members.