The Union Minister of Finance and Corporate Affairs Shri Arun Jaitley said that the present Government has taken a new initiative by setting-up a modern insolvency mechanism based on the best practices in the world. He said that the process of setting-up of an insolvency mechanisam including setting-up of the Insolvency and Bankruptcy Board of India (IBBI) was done by the present Government in the shortest possible time. The Finance and Corporate Affairs Minister was speaking at the function organized by the Insolvency and Bankruptcy Board of India (IBBI) here today in order to give away the Certificates of Registration to two Insolvency Professional Agency (IPA) companies.

The Finance Minister Shri Jaitley further said that there are lot of expectations from this new insolvency mechanism and sure that it will deliver the desired results in years to come.

Earlier, the Union Finance and Corporate Affairs Minister Shri Jaitley handed-over the Certificates of Registration to these two Insolvency Professional Agency (IPA) companies.

An Insolvency Professional Agency is a front line regulator for the insolvency professionals. It enrolls professional members, lays down standards of professional conduct for them and monitors their performance. It also redresses the grievances of consumers against its members.

The Insolvency and Bankruptcy Board of India (IBBI) has granted registration to the following two Section 8 (not-for-profit) companies to act as insolvency professional agencies (IPAs) under the IBBI (Insolvency Professional Agencies) Regulations, 2016:

a. Indian Institute of Insolvency Professionals of ICAI, and

b. ICSI Insolvency Professionals Agency.

With the notification of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, the IPAs can start enrolling the professional members from 29th November, 2016. This takes one step closer to implementation of the Insolvency and Bankruptcy Code, 2016.

Insolvency Professional Agency registration enables enrolment and regulation of insolvency professionals, advancing the new insolvency framework. Two Section 8 not-for-profit companies have been registered as Insolvency Professional Agencies authorised to enrol insolvency professionals, prescribe and monitor standards of professional conduct, supervise member performance and redress consumer grievances; their registration under the Insolvency Professional Regulations, 2016 enables commencement of professional enrolment and advances implementation of the Insolvency and Bankruptcy Code, 2016.