The Insolvency and Bankruptcy Board of India (IBBI) has introduced fresh guidelines for the empanelment of insolvency professionals to streamline and expedite appointments in corporate insolvency and bankruptcy proceedings, as reported by PTI.
Revised Framework for Empanelment
The revised framework outlines procedures for preparing a panel of insolvency professionals (IPs) who can serve as Interim Resolution Professionals (IRPs), Resolution Professionals (RPs), liquidators, and Bankruptcy Trustees (BTs). According to a circular issued on Monday, applicants seeking empanelment must not be under suspension or debarment and must not face any pending disciplinary proceedings. They are also required to disclose whether they have been convicted by any court during the last three years.
Expression of Interest and Consent
Under the new framework, insolvency professionals must submit an expression of interest for inclusion in the panel. Once consent is provided, IPs will not be allowed to decline assignments unless permitted by the National Company Law Tribunal (NCLT), Debt Recovery Tribunal (DRT), or the IBBI.
The regulator stated: "Any refusal to act as IRP, liquidator, RP or BT, as the case may be, on being appointed by the AA, without sufficient justification, will be treated as a deviation from consent and the name will be removed from the panel for six months."
Sector-Specific Disclosures
To improve sector-specific handling of insolvency matters, IBBI has also directed professionals to disclose industries where they are handling or have handled assignments under the Insolvency and Bankruptcy Code (IBC).
Timeline for Empanelment
Eligible insolvency professionals can submit their expression of interest for empanelment until June 19, 2026. The final list will be sent to adjudicating authorities by June 30, 2026.
