The Insolvency and Bankruptcy Board of India (IBBI) has amended the regulations to strengthen the oversight of bankruptcy resolution professionals by codifying the norms as regulations.

The IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Second Amendment) Regulations, 2022 mandate the filing of annual compliance certificates by insolvency professionals to be submitted to the board and the penalties covering a list of contraventions by these professionals.

Erring professionals face a penalty of up to 25 per cent of the fee charged by them. The penalties start from a minimum of Rs 50,000 or Rs 100,000depending on the breach and go up to Rs 200,000 or 25 percent of the fee charged by the professional, whichever is higher, the regulations said.

As per the amended regulations, the compliance officer shall submit to the board, acompliance certificate annually in the format issued by the board, verifying that the insolvency professional agency has complied with the provisions referred to in sub-regulation(1) provided that the annual compliance certificate shall also be signed by the managing director of the insolvency professional agency.

Insolvency ProfessionalAgency shall facilitate the receipt of relationship disclosures in accordance with the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations,2016. The agency shall also disseminate the disclosures.