IPs play a crucial role in insolvency resolution and liquidation processes under the Insolvency and Bankruptcy Code, 2016 (IBC). They act in various capacities, including Interim Resolution Professionals (IRPs), Resolution Professionals (RPs), Liquidators, and Bankruptcy Trustees.  

Previously, only specific assignments such as those under CIRP had to be added to the IBBI portal. Other categories, including Resolution Professionals for Personal Guarantors and Administrators for Financial Service Providers, were not covered under this requirement. 

To standardise the compliance process and ensure that all assignments are tracked, IBBI has now refined the Assignment Module. This circular formally mandates all IPs to report their appointments across all relevant processes, reducing delays and improving regulatory monitoring. 

Key Provisions 

Going forward, IPs must update their assignments on the IBBI portal upon appointment in the following capacities: 

• Interim Resolution Professional (IRP) under Corporate Insolvency Resolution Process (CIRP) 

• Resolution Professional (RP) under CIRP 

• Liquidator under the Liquidation Process 

• Liquidator under the Voluntary Liquidation Process 

• Resolution Professional under Insolvency Resolution for Personal Guarantors 

• Bankruptcy Trustee under the Bankruptcy Process for Personal Guarantors 

• Administrator under Insolvency and Liquidation Proceedings of Financial Service Providers 

IPs will access the IBBI portal using a unique username and password provided by the Board. Once an assignment is added and approved, IPs will be required to comply with subsequent regulatory obligations such as public announcements, Expressions of Interest (EOIs), and auction notices. 

Timeline for Compliance 

The circular specifies strict timelines for adding assignments to the IBBI portal: 

Failure to comply with these deadlines may result in regulatory action by IBBI. 

Impact 

1. Enhanced Compliance: Ensures that all appointments are promptly reported, improving regulatory oversight. 
2. Streamlined Processes: Reduces delays in information submission and aligns reporting requirements across all insolvency processes. 
3. Reduced Compliance Burden: Formalises an existing practice already followed by most IPs, making it more structured and efficient. 
4. Better Monitoring & Transparency: Facilitates a centralised database for insolvency professionals’ assignments, aiding in better governance. 

This measure is expected to improve overall efficiency in insolvency resolution and liquidation processes, ensuring greater accountability in the functioning of insolvency professionals.