Insolvency and Bankruptcy Board of India (IBBI) has rescinded several circulars issued between 2018 and 2021 as they are already provided in their regulations and are no longer needed, the insolvency regulator said in a circular on Wednesday.
In the process, 11 circulars have been rescinded to remove duplication. Contents of these circulars have already been included subsequently in updated regulations issued by the IBBI.
Insolvency regulators said it was reassuring to see that IBBI had suo moto conducted a review of various circulars and regulations issued by it since 2018 and as a result rescinded the circulars no longer required.
“This proactive approach by IBBI underlines the intent of the regulator to be active and relevant on a real-time basis as well as remove difficulties for the various professionals and agencies it oversees,” said Ashish Chhawchharia, Partner & National Head– Restructuring Services, Grant Thornton Bharat.
Among the circulars rescinded are January 3 circulars regarding use of registration number by insolvency professionals (IP) and IP not to outsource his responsibilities and ensure compliance with provisions of the applicable laws. All of these issues are covered in the IBBI regulations.
The 2018 circular, regarding confidentiality of information relating to processes under the code is also not required now as the subject is covered Already covered in clause 21 of ‘Code of Conduct’ specified in First Schedule to IP Regulations.
The circular regarding monetary penalties to be imposed by an Insolvency Professional Agency (IPA) is also part of the schedule to the Model Bye-Laws Regulations which was amended by IBBI.