Insolvency and Bankruptcy Board of India (IBBI)

Insolvency and Bankruptcy Board of India (IBBI)

Insolvency and Bankruptcy Board of India (IBBI) issues new guidelines to streamline the process of appointing Insolvency Professionals (IPs) as resolution professionals.

  • 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
  • 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)


Practice Question

Consider the following statements regarding Insolvency and Bankruptcy Code, 2016:

  1. The provisions of the Code are applicable to companies, limited liability entities, firms, and all financial service providers
  2. The proceedings of the resolution process will be adjudicated by the National Companies Law Tribunal (NCLT) for companies and the Debt Recovery Tribunal for individuals.

Which of the statements is/are correct?

 
 
 
 

Question 1 of 1

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