What is the Insolvency and Bankruptcy Board of India (IBBI)?

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About Insolvency and Bankruptcy Board of India (IBBI)

The IBBI was established on October 1, 2016 in accordance with the provisions of the ‘Insolvency and Bankruptcy Code, 2016’.
It is responsible for the implementation of the IBC. The IBC amends and consolidates the laws relating to the insolvency resolution of individuals, partnership firms, and corporate persons in a time-bound manner.
- The IBBI regulates professionals as well as processes.
- It has regulatory oversight over the insolvency professional agencies, insolvency professional entities, insolvency professionals, and information utilities.
- It enforces rules for processes of corporate insolvency resolution, individual insolvency resolution, corporate liquidation, and individual bankruptcy under the IBC.
It has also been designated as the ‘Authority’ under the Companies (Registered Valuers and Valuation Rules), 2017 for the regulation and development of the profession of valuers in the country.
Constitution of the Board: The Board consists of the following members who are appointed by the Central Government:
- A Chairperson.
- Three members from among the officers of the Central Government equivalent or not below the rank of a Joint Secretary. Out of the three members, each will represent the Ministry of Finance, the Ministry of Corporate Affairs, and the Ministry of Law, ex -officio.
- One member nominated by the RBI (Reserve Bank of India), ex-officio.
- Five other members nominated by the Central Government, out of which at least three should be whole-time members.
- The term of office of the Chairperson and members (other than ex-officio members) is five years or until they attain sixty-five years, whichever is earlier, and they are eligible for re-appointment.

Q1) What is Insolvency and Bankruptcy?

Insolvency is a financial state where a person cannot meet debt payments on time. Bankruptcy is a legal process that happens when the individual declares he or she can no longer pay back his or her debts to creditors.

Source: Equal access. Personal guarantors’ insolvency: IBBI mandates Resolution Professionals to provide reports to both debtor and creditor for enhanced transparency