Insolvency And Bankruptcy Board Of India (Insolvency Professionals) (Amendment) Regulations, 2022.

No. IBBI/2022-23/GN/REG088.- In exercise of the powers conferred by sections 196,
207 and 208 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016),
the Insolvency and Bankruptcy Board of India hereby makes the following regulations further
to amend the Insolvency and Bankruptcy Board of India (Insolvency Professionals)
Regulations, 2016, namely: –

1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India
   (Insolvency Professionals) (Amendment) Regulations, 2022.
   (2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations,
   2016 (hereinafter referred to as ‘the principal regulations’), for regulation 11, the following shall be substituted, namely:- “Disciplinary Proceedings 11. The disciplinary proceedings shall be conducted in accordance with the provisions of
   Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations,
   2017.”
3. In the principal regulations, in the First Schedule,
   (i) after clause 8A, the following clauses shall be inserted, namely: –
   “8B. An insolvency professional shall disclose his relationship, if any, with the corporate debtor, other professionals engaged by him, financial creditors, interim finance providers, and prospective resolution applicants to the insolvency professional agency of which he is a member, within the time specified hereunder:

8C. An insolvency professional shall ensure disclosure of the relationship, if any, of the
other professionals engaged by him with himself, the corporate debtor, the financial creditor,
the interim finance provider, if any, and the prospective resolution applicant, to the
insolvency professional agency of which he is a member, within the time specified as under:

Explanation: For the purposes of clause 8B and 8C above, ‘relationship’ shall mean any one
or more of the following four kinds of relationships at any time or during the three years
preceding the appointment of other professionals:

8D. An insolvency professional shall ensure timely and correct disclosures by him, and other
professionals appointed by him and shall provide a confirmation to the insolvency
professional agency of which he is a professional member to the effect that the appointment,
if any, of every other professional has been made at arms’ length relationship.”

(ii) after clause 15, the following clause shall be inserted, namely: –
“15A. An insolvency professional shall prominently state in all his communications to a
stakeholder, his name, address, e-mail, registration number and validity of authorisation for
assignment, if any, issued by the insolvency professional agency of which he is a member.”
(iii) after clause 25A, the following clauses shall be inserted, namely: –
“25B. An insolvency professional shall raise bills or invoices in his name towards his fees,
and such fees shall be paid to him through banking channel.
25C. An insolvency professional shall ensure that the insolvency professional entity or the
professional engaged by him raises bills or invoices in their own name towards their fees,
and such fees shall be paid to them through banking channel.”
(iv) after clause 27, the following clauses shall be inserted, namely: –
“27A. An insolvency professional shall, while undertaking assignment or conducting
processes, exercise reasonable care and diligence and take all necessary steps to ensure that
the corporate person complies with the applicable laws.
27B. An insolvency professional shall not include any amount towards any loss, including
penalty, if any, in the insolvency resolution process cost or liquidation cost, incurred on
account of non-compliance of any provision of the laws applicable on the corporate person
while conducting the insolvency resolution process, fast track insolvency resolution process,
liquidation process or voluntary liquidation process, under the Code.”

Note: The Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations,
2016 were published vide notification No. IBBI/2016-17/GN/REG003 dated 23rd November,
2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 424 on 23rd November,
2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency
Professionals) (Second Amendment) Regulations, 2021 published vide notification No.
IBBI/2021-22/GN/REG077 dated 22nd July, 2021 in the Gazette of India, Extraordinary, Part
III, Section 4, No. 294 on 22nd July, 2021.