Streamlined Reporting: IBBI Enforces Timely Assignment Updates for Insolvency Professionals

The Insolvency and Bankruptcy Board of India (IBBI) mandates insolvency professionals to report assignments on an electronic portal within set timelines to enhance record-keeping. Requirements specify deadlines for new, ongoing, and closed cases, aiming to reduce compliance burdens and ensure timely adherence to procedures.

The Insolvency and Bankruptcy Board of India (IBBI) has introduced a new mandate requiring insolvency professionals (IPs) to report their assignments on an electronic portal within specified timeframes. This directive aims to streamline record-keeping and ensure timely compliance with the regulatory procedures.

In its February 11 circular, the regulator emphasized the necessity for IPs to notify the IBBI about their appointments under various insolvency processes. While most professionals currently update their assignments for roles such as interim resolution professionals or resolution professionals under the Corporate Insolvency Resolution Process (CIRP), the board seeks to formalize this practice to alleviate compliance burdens and minimize delays.

The new regulations stipulate that IPs must update new assignments within three days of appointment. For ongoing cases not yet recorded, assignments should be added by February 28, and for closed cases by March 31, with extended deadlines for personal guarantor cases set to April 30, 2025. Once assignments are approved, IPs must follow through with further reporting requirements, including public announcements and auction notices.