IBBI proposes to limit number of assignments handled by IPs
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The Insolvency and Bankruptcy Board of India (IBBI) has proposed to limit the number of corporate insolvency cases a single insolvency professional (IP) is permitted to handle at any given time.
Currently, there is no limit on the number of assignments an IP is permitted to take; however the code of conduct requires IPs to not accept assignments if they will not be able to devote adequate time to them.
“… it is proposed to issue necessary guidelines to IPs advising them to limit the maximum number of assignments handled by them to 5,”, the insolvency regulator said in a discussion paper published on Thursday.
The proposed limit would be adjusted from five to one based on the turnover of the corporate debtor the IP is appointed to, with IPs allowed to handle up to five assignments for companies with up to Rs 1,000 crore each, and only one assignment if the corporate debtor has a turnover over Rs 50,000 crore. #casansaar (Source - IndianExpress)
Currently, there is no limit on the number of assignments an IP is permitted to take; however the code of conduct requires IPs to not accept assignments if they will not be able to devote adequate time to them.
“… it is proposed to issue necessary guidelines to IPs advising them to limit the maximum number of assignments handled by them to 5,”, the insolvency regulator said in a discussion paper published on Thursday.
The proposed limit would be adjusted from five to one based on the turnover of the corporate debtor the IP is appointed to, with IPs allowed to handle up to five assignments for companies with up to Rs 1,000 crore each, and only one assignment if the corporate debtor has a turnover over Rs 50,000 crore. #casansaar (Source - IndianExpress)
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