Regulation 13 - Inspection or Inquiry - Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016

Inspection or Inquiry 13. 9 [ (1) (a) Where the Board, after consideration of the application under sub-regulation (4) of regulation 12,- (i) is satisfied that the applicant is eligible under these Regulations, it may grant a certificate of recognition as an insolvency professional entity within sixty days of receipt of the application, excluding the time taken by the applicant for submitting additional documents, information or clarification, or appearing in person, as the case may be, under sub-regulation (4) of regulation 12; (ii) is of the prima facie opinion that the recognition ought not be granted, it shall communicate such opinion along with reasons thereof and provide the applicant an opportunity to submit its explanation within fifteen days of the receipt of the communication from the Board, to enable it to form a final opinion. (b) The Board shall, within thirty days of receipt of the explanation, if any, submitted by the applicant under clause (a), - (i) grant a certificate of recognition as an insolvency professional entity; or (ii) reject the application by an order, after recording reasons thereof. (c) The Board shall grant a certificate of recognition as an insolvency professional entity under clause (a) or (b) in Form D of the Second Schedule. ] (2) The recognition shall be subject to the conditions that the insolvency professional entity shall- (a) at all times continue to satisfy the requirements under Regulation 12; 1 [ (b) inform the Board, within 10 [ thirty ] days, when an individual ceases to be its director or partner, as the case may be, in Form F of the Second Schedule along with a fee of two thousand rupees; 3 [ Provided that when an individual ceases to be its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on the 31 st December 2020, the insolvency professional entity shall inform the Board, within thirty days of such cessation; ] 6 [ Provided further that when an individual ceases to be its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021 and ending on the 31st December 2021, the insolvency professional entity shall inform the Board, within thirty days of such cessation; ] 13 [ Provided further that in case the insolvency professional entity is enrolled with an insolvency professional agency, the intimation under this clause shall also be made to such insolvency professional agency to update its register of professional members. ] (c) inform the Board, within 10 [ thirty ] days, when an individual joins as its director or partner, as the case may be, in Form F of the Second Schedule along with a fee of two thousand rupees; 4 [ Provided that when an individual joins as its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020 and ending on the 31 st December 2020, the insolvency professional entity shall inform the Board, within thirty days of such joining; ] 7 [ Provided further that when an individual joins as its director or partner, as the case may be, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2021 and ending on the 31st December 2021, the insolvency professional entity shall inform the Board, within thirty days of such joining; ] 14 [ Provided further that in case the insolvency professional entity is enrolled with an insolvency professional agency, the intimation under this clause shall also be made to such insolvency professional agency to update its register of professional members. ] (ca) pay to the Board, a fee calculated at the rate of 11 [ one per cent. ] of the turnover from the services rendered by it in the preceding financial year, on or before the 30th of April every year, along with a statement in Form G of the 5 [ Second Schedule: Provided that for the financial year 2019-2020, an insolvency professional entity shall pay the fee under this clause on or before the 30th June, 2020; and ]] 8 [ Provided further that for the financial year 2020-2021, an insolvency professional entity shall pay the fee under this clause on or before the 30th June, 2021; and ] 12 [ Provided further that in case the insolvency professional entity is registered as an insolvency professional, the services for the purpose of this sub-regulation shall not include the services rendered as an insolvency professional provided under third proviso to clause (ca) of sub-regulation (2) of regulation 7. ] 2 [ (cb) submit to the Board, by 15th day of October every year, a compliance certificate in Form H, for the preceding financial year: Provided that an insolvency professional entity recognised as on 31st March, 2019 shall submit to the Board, by 31st December 2019, a compliance certificate in Form H for the financial year 2018-19. ] (d) abide by such other conditions as may be specified. (3) An insolvency professional entity shall be jointly and severally liable for all acts or omissions of its partners or directors as insolvency professionals committed during such partnership or directorship. ******* Notes 1. Substituted vide Notification No. IBBI/2018-19/GN/REG036 dated 11-10-2018 before it was read as (b) inform the Board, within seven days, when an insolvency professional ceases to be its director or partner, as the case may be, (c) inform the Board, within seven days, when an insolvency professional joins as its director or partner, as the case may be, and 2. Inserted vide Notification No. IBBI/2019-20/GN/REG049 dated 25-10-2019 3. Inserted vide Notification No. IBBI/2020-21/GN/REG057 dated 20-04-2020 w.e.f. 28-03-2020 4. Inserted vide Notification No. IBBI/2020-21/GN/REG057 dated 20-04-2020 w.e.f. 28-03-2020 5. Substituted vide Notification No. IBBI/2020-21/GN/REG057 dated 20-04-2020 w.e.f. 28-03-2020 before it was read as Second Schedule; and 6. Inserted vide Notification No. IBBI/2021-22/GN/REG073 dated 27-04-2021 7. Inserted vide Notification No. IBBI/2021-22/GN/REG073 dated 27-04-2021 8. Inserted vide Notification No. IBBI/2021-22/GN/REG073 dated 27-04-2021 9. Substituted vide Notification No. IBBI/2021-22/GN/REG077 dated 22-07-2021 before it was read as (1) If the Board is satisfied, after such inspection or inquiry as it deems necessary that the applicant is eligible under these Regulations, it may grant a certificate of recognition as an insolvency professional entity in Form D of the Second Schedule to these Regulations. 10. Substituted vide Notification No. IBBI/2021-22/GN/REG077 dated 22-07-2021 before it was read as seven 11. Substituted vide Notification No. IBBI/2022-23/GN/REG097 dated 20-09-2022 w.e.f. 01-10-2022 before it was read as, 0.25 percent 12. Inserted vide Notification No. IBBI/2022-23/GN/REG097 dated 20-09-2022 w.e.f. 01-10-2022 13. Inserted vide Notification No. IBBI/2022-23/GN/REG099 dated 28-09-2022 14. Inserted vide Notification No. IBBI/2022-23/GN/REG099 dated 28-09-2022