Context:
Insolvency and Bankruptcy Board of India (IBBI) issues new guidelines to streamline the process of appointing Insolvency Professionals (IPs) as resolution professionals.
Insolvency and Bankruptcy Board of India (IBBI):
- Statutory body under the Insolvency and Bankruptcy Code, 2016
- Headquarters – New Delhi
- Ministry – Ministry of Corporate Affairs
- Composition – 10 members appointed by the Central Government
- Functions –
- It has regulatory oversight over the service providers in the insolvency ecosystem.
- It has responsibility to provide a regulatory framework for insolvency and resolution processes of corporates and individuals.
- Functioning of the IBBI are governed by a Governing Board constituted by the Central Government
Insolvency and Bankruptcy Code, 2016:
- Bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
- Insolvency – A situation where individuals or companies are unable to repay their outstanding debt.
- Bankruptcy – A legal declaration of one’s inability to pay off debts.
- Applicability – Applicable to companies, limited liability entities, firms, and individuals (i.e. all entities other than financial service providers).
- Timeframe for completion of the exercise – Generally, Companies have to complete the entire insolvency exercise within 180 days
- The deadline may be extended if the creditors do not raise objections to the extension.
- Adjudication – By the National Companies Law Tribunal (NCLT) for companies and the Debt Recovery Tribunal for individuals.
Source: Economic Times
Previous Year Question
Which one of the following links all the ATMs in India?
[UPSC Civil Service Exam – 2018 Prelims]
(a) Indian Banks’ Association
(b) National Securities Depository Limited
(c) National Payments Corporation of India
(d) Reserve Bank of India
Answer: (c)
