[as per Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016 ]

Eligibility for registration of Insolvency professional Agency

No person shall be eligible to be registered as an insolvency professional agency unless it is a company
registered under section 8 of the Companies Act, 2013, and –

a) its sole object is to carry on the functions of an insolvency professional agency under the Code;
(b) it has bye-laws and governance structure in accordance with the Insolvency and Bankruptcy Board of India
(Model Bye-Laws and Governing Board of Insolvency Professional Agencies), 2016;
(c) it has a minimum net worth of ten crore rupees;
(d) it has a paid-up share capital of five crore rupees,
(e) it is not under the control of person(s) resident outside India,
(f) not more than 49% of its share capital is held, directly or indirectly, by persons resident outside India; and
(g) it is not a subsidiary of a body corporate through more than one layer:
Explanation: “layer” in relation to a body corporate means its subsidiary;
(h) itself, its promoters, its directors and persons holding more than 10% of its share capital are fit and proper
persons.

Explanation: For determining whether a person is fit and proper under these Regulations, the Board may
take account of any consideration as it deems fit, including but not limited to the following criteria-

(i) integrity, reputation and character,

(ii) absence of convictions and restraint orders, and
(iii) competence including financial solvency and net worth.

Insolvency professional Agency:-Application for registration or renewal thereof.

(1) A company eligible for registration as an insolvency professional agency, may make an application to the
Board in Form A of the Schedule to Insolvency and Bankruptcy Board of India (Insolvency Professional
Agencies) Regulations, 2016., along with a non-refundable application fee of ten lakh rupees.

(2) An insolvency professional agency who has been granted registration under Regulation 5, may six months
before the expiry of such registration, make an application for renewal in Form A of the Schedule to these
Regulations, along with a non-refundable application fee of five lakh rupees.

(3) The Board shall acknowledge an application made under this Regulation within seven days of its receipt.

(4) The Board shall examine the application, and give an opportunity to the applicant to remove the deficiencies, if any, in the application.

(5) The Board may require the applicant to submit, within reasonable time, additional documents, information or clarification that it deems fit.

(6) The Board may require the applicant to appear, within reasonable time, before the Board in person, or
through its authorised representative for clarifications required for processing the application.

 Grant of certificate of registration to Insolvency professional Agency

(1) If the Board is satisfied, after such inspection or inquiry as it deems necessary and having regard to the
principles specified in section 200 of the Code, that the applicant:—

(a) is eligible under Regulation 3;
(b) has adequate infrastructure to perform its functions under the Code;
(c) has in its employment, persons having adequate professional and other relevant experience, to enable it to
perform its functions under the Code; and
(d) has complied with the conditions of the certificate of registration, if he has submitted an application for
renewal under Regulation 4(2)

it may grant or renew a certificate of registration to the applicant to carry on the activities of an insolvency
professional agency in Form B of the Schedule to these Regulations, within sixty days of receipt of the
application, excluding the time given by the Board for removing the deficiencies, or presenting additional
documents, information or clarification, or appearing in person, as the case may be.

(2) The registration shall be subject to the conditions that the insolvency professional agency shall –

(a) abide by the Code, rules, regulations, and guidelines thereunder and its bye-laws;
(b) at all times after the grant of the certificate continue to satisfy the requirements under sub-regulation (1);
(c) pay a fee of five lakh rupees to the Board, payable every year after the year in which the certificate is
granted or renewed;
(d) seek approval of the Board when a person, other than a statutory body, seeks to hold more than ten per
cent, directly or indirectly, of the share capital of the insolvency professional agency;
(e) take adequate steps for redressal of grievances; and
(f) abide by such other conditions as may be specified.

(3) The certificate of registration shall be valid for a period of five years from the date of issue.

Procedure for rejecting application of Insolvency professional Agency

6(1) If, after considering an application made under Regulation 4, the Board is of the prima facie opinion the
registration ought not be granted or renewed, or be granted or renewed with additional conditions, it shall
communicate the reasons for forming such an opinion and give the applicant an opportunity to explain why its
application should be accepted, within fifteen days of the receipt of the communication from the Board, to
enable it to form a final opinion.
(2) The communication under sub-regulation (1) shall be made to the applicant within forty five days of receipt
of the application, excluding the time given by the Board for removing the deficiencies, presenting additional
documents, information or clarifications, or appearing in person, as the case may be.

(3) After considering the explanation, if any, given by the applicant under sub-regulation (1), the Board shall
communicate its decision to-

(a) accept the application, along with the certificate of registration, or

(b) reject the application by an order, giving reasons thereof within thirty days of receipt of explanation.

(4) The order rejecting an application for renewal of registration shall require the insolvency professional agency to-

(a) discharge pending obligations;

(b) continue its functions till such time as may be specified, to enable the enrolment of its members with
another insolvency professional agency; and
(c) comply with any other directions as considered appropriate

SURRENDER OR CANCELLATION OF REGISTRATION

[ Regulation 7  of  Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016] 

7 (1) An insolvency professional agency may submit an application for surrender of a certificate of registration to the Board, providing –

(a) the reasons for such surrender;
(b) the details of all the pending or on-going engagements under the Code of the insolvency professionals
enrolled with it;
(c) details of its pending or on-going activities; and
(d) the manner in which it seeks to wind-up its affairs as an insolvency professional agency.

(2) The Board shall within seven days of receipt of the application, publish a notice of receipt of such application on its website and invite objections to the surrender of registration, to be submitted within fourteen days of the publication of the notice.
(3) After considering the application and the objections submitted under sub-regulation (2), if any, the Board may within thirty days from the last date of submission of objections, approve the application for surrender of
registration subject to such conditions as it deems fit.
(4) The approval under sub-regulation (3) may require the insolvency professional agency to-

a) discharge any pending obligations; or

(b) continue its functions till such time as may be specified, to enable the enrolment of its members with
another insolvency professional agency

(5) The Board, after being satisfied that the requirements of sub-regulation (4) have been complied with, shall
publish a notice on its website stating that the surrender of registration by the insolvency professional agency has taken effect.

Read Complete Regulations :-

• Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016

• Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations 2016

]]> https://www.taxheal.com/registration-of-insolvency-professional-agency.html/feed 0