IBBI proposes compliance procedures for IPs, seeks stakeholder feedback

The IBBI has proposed changes to the corporate insolvency resolution process (CIRP) forms and compliance framework to reduce compliance burden on insolvency professionals, and sought stakeholders' comments by July 1.

These changes will reduce the amount of information and data that insolvency professionals (IPs) need to submit, thereby enhancing efficiency and reducing redundancy.

The Insolvency Bankruptcy Board of India (IBBI) has also proposed to remove duplicate submissions and simplification of the reporting process.

Under the discussion paper issued on June 10, the IBBI said the proposed changes will "simplify the compliance process by combining various reporting system on IP and IBBI website into a single, centralised IBBI website, eliminating duplication, and making it easier for stakeholders to access and use".

The IBBI -- a statutory body functioning under the corporate affairs ministry -- has invited stakeholders to provide comments on the discussion paper by July 1.

The proposal also includes a shift to a monthly compliance reporting framework.

Currently, the timelines for filing various CIRP forms are linked to different events such as the insolvency commencement date, public announcement, and appointment of an resolution professional.

Under the proposed new framework, the IPs will report the status and progress of the CIRP as of the last day of every month, with submissions due by the 10th day of the following month.

These changes will enable the IPs to plan their submissions more efficiently and provide the IBBI with consolidated monthly updates on all ongoing CIRPs?.

Further, IBBI has proposed migrating specific compliance obligations, such as disclosure of costs and relationships, from various dispersed portals managed by insolvency professional agencies to a unified platform on the IBBI website.

This consolidation is intended to simplify the compliance process and enhance regulatory oversight?, the IBBI said.