The Insolvency and Bankruptcy Board of India (IBBI), in exercise of its powers conferred under section 240 of the Insolvency and Bankruptcy Code, 2016, has notified the following two regulations yesterday:

• The Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, and
• The Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016.

These two regulations inter alia provide for the eligibility norms to be a Professional Member of an Insolvency Professional Agency and also for eligibility norms to be registered with the IBBI as an Insolvency Professional Agency.

A company registered under Section 8 of the Companies Act, 2013 with a minimum net worth of ₹ 10 crore shall be eligible to be an Insolvency Professional Agency. More than half of the Directors of its Board shall be independent directors and not more than one fourth of the Directors shall be insolvency professionals. It shall have Membership Committee(s), Monitoring Committee, Grievance Redressal Committee(s), and Disciplinary Committee(s) for regulation and oversight of professional members.

These two regulations are available at www.mca.gov.in and www.ibbi.gov.in.

Insolvency professional agency eligibility updated: new regulations set corporate eligibility, board composition and mandatory oversight committees. The IBBI notified two regulations prescribing eligibility norms and governance requirements for Insolvency Professional Agencies and professional members. Eligible agencies must satisfy a minimum net worth requirement, restrict the share of insolvency professionals on their boards while ensuring a majority of independent directors, adopt model bye-laws, and constitute Membership, Monitoring, Grievance Redressal, and Disciplinary Committees to regulate enrollment, oversight, complaints, and disciplinary processes.