IBBI mandates timely reporting of insolvency assignments on portal

Regulator IBBI has made it mandatory for insolvency professionals to report their assignments on its electronic portal within the prescribed time to streamline record-keeping.

In a circular dated February 11, the insolvency regulator said, "The IPs (insolvency professionals) are mandated to intimate the insolvency and bankruptcy board of India (IBBI) of his/her appointment under various processes under the Code".

Currently, the IPs add their assignments on the IBBI portal for appointments for interim resolution professionals (IRPs) or resolution professionals (RPs) under the corporate insolvency resolution process (CIRP), as well as for liquidators in liquidation and voluntary liquidation processes, the Board said.

However, there is no requirement for adding assignments relating to RPs under the insolvency resolution of personal guarantors, bankruptcy trustee under the bankruptcy process of personal guarantors and administrator under insolvency and liquidation proceedings of financial service providers, it added.

To streamline this process and ensure thorough record-keeping, the Board has refined the assignment module. While most IPs already update their assignments upon appointment, this directive formalises the practice to reduce compliance burdens and minimise delays, as per the circular.

The Board has also specified clear deadlines for reporting assignments.

For new assignments, the IPs will have to update the portal within three days of their appointment, while for ongoing cases, where assignments has not already yet been added, the IP will add the assignment by February 28, IBBI said.

In case of closed cases, the IP will have to add the assignment by March 31. However, for closed cases related to personal guarantors, the deadline has been extended to April 30, 2025.

Once the assignment is added and approved by the IBBI, the IP will be required to fulfill subsequent compliances, including reporting requirements, such as public announcements, expressions of interests, and auction notices, as applicable under different processes requirements of the Code, it added.