Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2021
2. In the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (hereinafter referred to as the principal regulations), in regulation 5,—
(i) after sub-regulation (4), the following sub-regulation shall be inserted, namely:—
“(4A) A shareholder director shall be an individual, who satisfies the eligibility norms, including experience and qualification, as decided by the Governing Board.”;
(ii) in sub-regulation (6), for clause (b), the following clause shall be substituted, namely:—
“(b) who has expertise in the field of finance, law, economics, accountancy, valuation, management or insolvency;”;
(iii) after sub-regulation (13), the following sub-regulations shall be inserted, namely:—
“(14) A director shall disclose any order of any authority that affects his character or reputation, to the insolvency professional agency, within one week of issue of such order:
Provided that a copy of the order shall be placed forthwith on the website of the insolvency professional agency;
Provided further that such director shall forthwith cease to be a director of the insolvency professional agency where the order disqualifies him to be a director of a company.”.
3. In the principal regulations, after regulation 5B, the following regulations shall be inserted, namely:-
(1) The Governing Board shall evaluate its performance in a financial year within three months of the closure of the year, in the manner decided by it.
(2) The insolvency professional agency shall publish a report on self-evaluation referred to in sub-regulation (1) on its website.
(1) An insolvency professional agency shall designate or appoint a compliance officer who shall be responsible for ensuring compliance with the provisions of the Code and regulations, circulars, guidelines, and directions issued thereunder.
(2) The compliance officer shall, immediately and independently, report to the Board any non-compliance of the provisions referred to in sub-regulation (1).
(3) The compliance officer shall submit a compliance certificate to the Board annually, verifying that the insolvency professional agency has complied with the provisions referred to in sub-regulation (1):
Provided that the annual compliance certificate shall also be signed by the managing director of the insolvency professional agency.
The Governing Board shall appoint or remove the compliance officer only by means of a resolution passed in its meeting”
Insolvency and Bankruptcy Board of India
[Notification dt. 14-01-2021]