IBBI Full Form, Powers and Functions

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IBBI Full Form, Powers and Functions

IBBI full form is Insolvency and Bankruptcy Board of India. It was established on 1st October 2016, under the Insolvency and Bankruptcy Code 2016. IBC 2016 amends and consolidates the laws relating to insolvency resolution of individuals, partnership firms and corporate persons in a time-bound manner. IBBI plays an important role in ensuring the provisions of IBC 2016 are complied with.

What is IBBI Full Form?

The full form of IBBI is Insolvency and Bankruptcy Board of India. IBBI is a statutory body that regulates and promotes the bankruptcy and insolvency process in India. The primary function of this statutory body is to ensure IBC 2016 is implemented effectively and efficiently throughout India. IBBI comes under the jurisdiction of the Indian Government. 

The IBBI Governing Board members are selected by the Ministry of Corporate Affairs (MCA) in consultation with the Ministries of Finance and Law & Justice, as well as the Reserve Bank of India (RBI).

Powers and Functions of IBBI

The key powers and functions of IBBI include the following:

• The IBBI board helps shape and oversee how insolvency agencies, professionals, information utilities and related institutions operate.

• It charges fees for registering and renewing the licenses of these professionals and organizations.

• IBBI sets the basic eligibility criteria for registering insolvency agencies, professionals and information utilities and manages their registration status incl. renewals, suspensions, cancellations, and withdrawals.

• It also defines the standards and regulations that govern how these professionals and entities function.

• The IBBI prescribes the core syllabus for exams that individuals must pass to qualify as bankruptcy professionals.

• It creates rules and guidelines related to various aspects of insolvency and bankruptcy under the IBC Code.

• IBBI issues instructions to ensure the timely resolution and disposal of assets belonging to debtors or corporate debtors.

• It conducts research and studies on issues related to insolvency and bankruptcy.

• IBBI works to raise public awareness about insolvency laws and procedures in India.

• It investigates any misconduct by insolvency professionals and takes disciplinary actions as needed.

• IBBI also appoints members to various committees and panels under the IBC, including governing boards that oversee the internal management of insolvency professional agencies.

• It provides guidance and support to insolvency professionals and other stakeholders in the insolvency process.

• IBBI continuously monitors and evaluates the performance of registered insolvency professionals.

• It identifies specific groups of people eligible to receive insolvency-related services at subsidized rates.

• It has a framework in place to handle complaints and grievances against insolvency professionals, agencies and utilities and ensures that actions taken comply with IBC regulations.

• IBBI is authorized to impose penalties, fines and sanctions on those who breach the provisions of the IBC or its regulations.

• It can also initiate legal proceedings against violators when necessary.

• The IBBI outlines the conditions under which insolvency professionals can be expelled from their professional agencies.

• Lastly, the IBBI has certain powers similar to those of a civil court in addition to the authority granted under the IBC.

Conclusion

IBBI is a regulatory body established under IBC 2016 to oversee insolvency proceedings and regulate the entities involved in the process like insolvency professionals, agencies and information utilities. Its powers and functions include: regulating insolvency professionals/agencies, drafting/enforcing rules under the IBC law, monitoring insolvency proceedings, promoting transparency as well as accountability and supporting insolvency cases’ effective resolution.

Frequently Asked Questions (FAQs)

Q1. What is the full form of IBBI?

A. IBBI’s full form is Insolvency and Bankruptcy Board of India.

Q2. IBBI was established under which Act?

A. IBBI was established under the Insolvency and Bankruptcy Code 2016.

Q3. When was IBBI incorporated?

A. IBBI was incorporated on 1st October 2016.

Q4. Who appoints the members of the IBBI Governing Board?

A. The Ministry of Corporate Affairs (MCA) in coordination with the Ministries of Finance and Law & Justice, along with the Reserve Bank of India (RBI), appoint the members of the IBBI Governing Board.

Q5. Can one approach IBBI directly instead of going to a tribunal or court?

A. No, IBBI is a regulatory body and does not handle individual insolvency or bankruptcy cases directly. If you are involved in such a matter, you need to approach the appropriate adjudicating authority like the National Company Law Tribunal for companies or the Debt Recovery Tribunal for individuals and partnerships.

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