What is the role of Insolvency and Bankruptcy Board of India (IBBI)?

• The government has appointed Aparna Sinha as the ex-officio member in the Insolvency and Bankruptcy Board of India (IBBI).

• Sinha, who is currently serving as Adviser (FSRL), Department of Economic Affairs, Ministry of Finance, will represent the ministry on the board, the Ministry of Corporate Affairs (MCA) said in a notification.

Insolvency and Bankruptcy Board of India (IBBI)

• The Insolvency and Bankruptcy Board of India (IBBI) was established on October 1, 2016 under the Insolvency and Bankruptcy Code, 2016.

• The IBBI is the statutory body responsible for overseeing the implementation of the IBC. 

• It regulates service providers as well as processes under the Code. 

• Section 196 of the Code enumerates the functions of the Board. 

The IBBI has the following broad powers and responsibilities:

i) Regulation and development of market processes and practices relating to the Corporate Insolvency Resolution Process (CIRP), the liquidation process, and individual insolvency and bankruptcy.

ii) Registration and regulation of service providers for the insolvency process, including Insolvency Professionals (IPs), Insolvency Professional Agencies (IPAs), Information Utilities (IUs), Registered Valuers (RVs), and Registered Valuer Organisations (RVOs).

iii) Oversight of markets and service providers through surveillance, investigation, and grievance redressal.

iv) Enforcement of regulations for service providers and adjudication, if necessary, to ensure their orderly functioning.

v) Professional development of expertise through education, examination, and training.

Constitution of IBBI:

• Section 189 of the IBC provides for the constitution of the IBBI. 

• The members of IBBI are appointed by the central government.

The IBBI shall consist of:

i) A chairperson.

ii) Three ex-officio members from among the officers of the central government not below the rank of Joint Secretary or equivalent, one each to represent the Ministries of Finance, Corporate Affairs, and Law & Justice.

iii) One ex-officio member nominated by the Reserve Bank of India (RBI).

iv) Five other members nominated by the central government, of whom at least three are full time members.