Hyderabad, September 15, 2017: The Insolvency and Bankruptcy Board of India (IBBI) which has so far registered 940 insolvency professionals (IPs) is in the process of granting registration to about 100 more such professionals (IPs), its Whole Time Member, Dr Navrang Saini said at an ASSOCHAM event held in Hyderabad today.
“It is a continuous process, the applications come to us through insolvency professionals’ agencies, we examine the applications and carry out due diligence and then we grant registration to them,” said Dr Saini while addressing an ASSOCHAM National Conference on IBC and RERA.
He also said that the IBBI had received total three applications for registration as information utility (IU) out of which two applicants have been granted in-principle approval and it is in the process of examining the third one.
“We are in the process of giving approval to one of the IU, we may give the final registration if they meet all criteria, we have already given in-principal approval to two IUs and out of that I hope one will start functioning by end of this month, the third application is still under examination with the Board,” said Dr Saini.
He earlier explained that IUs collect data from creditors which help the NCLTs (National Company Law Tribunals) in specifically admitting the cases. “As the default is to be admitted so if the IU is having proper and authentic data then it will take very less in admitting the case.”
He also informed that up to 12th September, 3,437 cases have been filed and out of those 354 cases have already been admitted by the various benches of NCLT and out of that 337 have already been rejected.
“To deal with such a large number of insolvency related matters, we need institutional infrastructure,” said Dr Saini.
The IBBI Whole Time Member also informed that rules for registered valuers are to be made by Ministry of Corporate Affairs which is in the process of notifying and issuing the same.
The Board has already invited suggestions on the regulations which have already been notified by the Board and it will receive the suggestions up to December 31 and come out with the amendments based on the suggestions received and advisory committees constituted for this purpose by March 31, 2018.
“If any difficulty has been faced by the stakeholders then they can submit their suggestions and based on the same and advice of advisory committees we will start the process for amending the regulations,” said Dr Saini.
He further said that IBBI has been in the forefront in building capacity, educating the market and proactively supporting the implementation of IBC.
In his address at the ASSOCHAM conference, Mr G. Somesh Kumar, principal secretary, revenue (commercial taxes and excise), Telangana said that both IBC and RERA provide a level playing field to the industry which will mean that people who do business properly they will not have to compete with those who do not follow any rules and regulations.
“Though we are facing a lot of issues when it comes to the IBC but what We perhaps need to do is to help the government come out with those quick responses which will ensure that the entire process becomes very smooth and that role is to be played by industry and professionals as their inputs will help us resolve many of these issues,” said Mr Kumar.
On Goods and Services Tax (GST), Mr Kumar said that industry is really finding it very difficult to upload their invoices to deal with the whole issue.
“In the last GST Council Meeting held in Hyderabad a GOM (Group of Ministers) has been formed for looking into particularly issues related with GST network to be stabilised,” he said.
He added that he would be attending the meeting to be held in Bengaluru tomorrow along with state finance minister. “I hope we will be able to resolve most of the issues.”