In a published discussion paper, the Insolvency and Bankruptcy Board of India (IBBI) suggested streamlining the forms filed by resolution professionals for the corporate insolvency resolution process (CIRP), in response to the Financial Stability and Development Council’s (FSDC) recommendation to lessen the burden of compliance. The purpose of the suggested modifications is to reduce redundancy and simplify the formalities that resolution specialists handle.
For example, IBBI has suggested switching to a monthly compliance reporting framework, in which insolvency professionals would file the necessary forms by the tenth day of the following month, and report the status and progress of the CIRP as of the last day of each month.
The deadlines for submitting different CIRP forms are currently associated with distinct events, including the date of insolvency commencement, the announcement to the public, the hiring of resolution consultants, and the issuance of information memos. According to IBBI, this causes the filing deadlines for forms to fall on different dates for an insolvency practitioner managing several CIRP assignments, which complicates the filing procedure.
IBBI has proposed to remove a number of forms, including the pre-assignment form and CIRP six form, which provide information about interim financing and the start of the company’s guarantors’ insolvency resolution process, among other things. According to the insolvency regulator, this is being done because pertinent information is captured in other ways.
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