IBBI Proposes Streamlined Compliance Measures to Simplify Insolvency Compliance Processes

The Insolvency and Bankruptcy Board of India (IBBI) is working towards easing the compliance obligations for insolvency professionals overseeing stressed asset resolution while maintaining accuracy. One key initiative involves consolidating reporting, deadlines, and information onto a single, accessible platform.

A recent discussion paper by IBBI suggests reducing the volume of required submissions and rationalising compliance deadlines to alleviate the burden on insolvency professionals. Additionally, the regulator proposes consolidating multiple reporting systems into a unified IBBI website, aiming to eliminate redundancy and enhance stakeholder accessibility.

This effort aims to create a regulatory environment that is both robust and adaptable to stakeholders’ changing needs. As part of this initiative, IBBI is considering a framework where insolvency professionals would provide monthly updates on the status of the corporate insolvency resolution process (CIRP).

Currently, timelines for filing CIRP forms are tied to various events, such as the commencement of insolvency, public announcements, and the appointment of resolution professionals. This results in multiple filings throughout the month. However, the existing timelines prescribed in the Insolvency and Bankruptcy Code and regulations for different activities will remain unchanged.