IBBI proposes cap on assignments for insolvency professionals to curb delays
New Delhi suggested a CAP application that Bankruptcy experts (IPS) could overcome the number of homeworks (IPS) in order to increase productivity and provide fair distribution of the work.
Currently, IPs are limited to 10 duties as stable professionals (RPS) in corporate bankruptcy resolution processes (CIRPS), and more than three of them may exceed the demands accepted. LaEach one 1,000 Crore.
In a Tuesday, IBBI said in a discussion document that the proposed changes will expand this ceiling to cover the roles of IRP and liquidation to accept the comparable complexity and time demands of these assignments.
The movement faces an disproportionate concerns that a small IP group deals with a large number of homework in some cases, in some cases, and new registered professionals, due to the unequal distribution of the work.
As of March 31, 2025, 2,198 from 4,527 registered IPs issued a valid authorization for homework and many of them played multiple roles in addition to their regular applications.
Under the proposed framework, IBBI said that when the new rules entered into force as RP, IRP or Liquidation Range of IPs, the active case loads would not be allowed to get new jobs until their fell under the threshold.
The amendments shall be carried out through the deletion of Article 22 of the IBBI (Bankruptcy Professionals) Regulations, Article 22 of the Rules of Behavior in 2016, and in particular the addition of a new norm that closes total duties.
In a separate discussion article, the IBB also proposed to delete the rules of behavior (IPS) for bankruptcy professionals by repeating the sale of debtor assets during announcement and bankruptcy.
Within the scope of the article, unless there is no impartiality, independence or impartial disorder, it prohibits IPS and relatives from acquiring the assets of a debtor during the liquidation or bankruptcy process and the approval of the Board has been taken.
However, the Board noted that similar prohibitions have been clearly demonstrated in the rules of the liquidation process of IBB and that the bankruptcy process for personal guarantees for personal guarantees of corporate borrowers is clearly stated.
“In order to promote reproduction and compliance in regulations, it is recommended that Article 6 be erased from the rules of behavior for bankruptcy experts.” He said.
He added that the abolition of the article from the rules of behavior, will avoid potential reproduction and excess, and that certain prohibitions will primarily ensure that the realization of the existence of the existence is within the rules that manage the procedural aspects.
India Bankruptcy and Bankruptcy Board (IBBI) invited public comments about the proposals until September 1.
