Answer By law4u team
The Insolvency and Bankruptcy Board of India (IBBI) is the regulatory authority established under the Insolvency and Bankruptcy Code, 2016. It oversees the insolvency resolution and bankruptcy processes in India, ensuring transparency, efficiency, and accountability. The IBBI regulates insolvency professionals, insolvency professional agencies, information utilities, and insolvency professional entities to strengthen the insolvency framework.
Key Roles and Functions of IBBI
Regulation and Registration
IBBI registers and regulates insolvency professionals, insolvency professional agencies, and information utilities, ensuring they comply with standards of professional conduct.
Oversight of Insolvency Process
IBBI monitors the insolvency resolution process, liquidation, and bankruptcy proceedings to ensure adherence to the IBC provisions and timelines.
Formulation of Regulations
The Board frames rules and regulations governing the conduct of insolvency professionals, the functioning of insolvency agencies, and the operational guidelines for insolvency resolution.
Capacity Building and Training
IBBI conducts training programs and workshops for insolvency professionals and stakeholders to promote knowledge and best practices.
Grievance Redressal and Disciplinary Actions
It addresses complaints against insolvency professionals and takes disciplinary actions when professional misconduct is identified.
Promoting Transparency and Information Sharing
Through regulation of information utilities, IBBI facilitates the availability of accurate financial data and credit information for insolvency proceedings.
Advisory Role
IBBI advises the central government on insolvency and bankruptcy policy matters, amendments, and reforms.
Legal Framework
- Section 188 to 204, IBC – Establishment, powers, and functions of IBBI
- IBBI Regulations – Detailed rules for insolvency professionals and agencies
Example
When a new insolvency professional wants to practice, they must register with the IBBI after meeting eligibility criteria. The IBBI ensures the professional adheres to ethical standards and undergoes periodic training. If complaints arise, IBBI investigates and may suspend or cancel registration to maintain the profession’s integrity.
