IBBI - Current Affairs Questions and Answers

ANSWER: NeSL

Explanation:
The Insolvency and Bankruptcy Board of India (IBBI) registered National E-Governance Services Limited (NeSL) as an Information Utility (IU) under the IBBI (Information Utilities) Regulations, 2017.

This registration is valid for five years from the date of registration.

IU stores financial information that helps to establish defaults as well as verify claims expeditiously and thereby facilitates completion of transactions under the Insolvency and Bankruptcy Code, 2016 in a time bound manner.

It constitutes a key pillar of the insolvency and bankruptcy ecosystem, the other three being the Adjudicating Authority (National Company Law Tribunal and Debt Recovery Tribunal), the IBBI and Insolvency Professionals.

NeSL becomes the first IU registered by the IBBI.

ANSWER: Mamta Suri

Explanation:
Dr. (Ms.) Mamta Suri took charge as Executive Director, Insolvency and Bankruptcy Board of India (IBBI) in New Delhi on 16th Aug 2017.

Before joining IBBI, Dr. Suri was serving as Chief General Manager, Insurance Regulatory Development Authority of India.

Dr. Suri has obtained her Ph. D. in Finance from University of Delhi and M. Sc.in Insurance Risk and Management from City University, London.

Dr. Suri is a Chartered Financial Analyst (CFA) from the Institute of Chartered Financial Analysts of India, and she has completed her graduation in law.

She has also received Honorary membership for High Scholastic Achievement from USA.

ANSWER: Insolvency and Bankruptcy Board of India

Explanation:
The Insolvency and Bankruptcy Board of India (IBBI) has powers to start probe against service providers registered with it without intimating them, according to new regulations.

IBBI, which is implementing the Insolvency and Bankruptcy Code (IBC), has notified the regulations for inspection and investigation of service providers registered with it.

Insolvency professional agencies, professionals, entities and information utility are considered as service providers under the Code.

The Code, which provides for a market-determined and time-bound resolution of insolvency proceedings, became operational in December 2016.

As per the regulations, the investigation authority has to serve a notice intimating the entity concerned about the probe at least ten days in advance.

However, the requirement could be done away with on grounds such as apprehensions that the records of the particular service provider might be destroyed before the probe starts.

ANSWER: Mukulita Vijayawargiya

Explanation:
Mukulita Vijayawargiya today took charge as a whole time member of the Insolvency and Bankruptcy Board of India (IBBI).

She would look after the administrative law wing.

She will also look after Information Technology, Limited Insolvency Examination, National Insolvency Examination, Finance and Accounts and Communication,.

Vijayawargiya was a member of Bankruptcy Law Reforms Committee (BLRC) based on which, the Insolvency and Bankruptcy Code has been framed.

Dr. (Ms.) Vijayawargiya was a member of Bankruptcy Law Reforms Committee (BLRC) based on which, the Insolvency and Bankruptcy Code, 2016 has been framed.

She played a key role in drafting the Insolvency and Bankruptcy Code, 2016 as Additional Secretary in the Legislative Department, Ministry of Law & Justice.

Dr. Vijayawargiya served as a member of Indian Legal Service. She has vast experience of 35 years in various fields of law.

She has been associated with drafting/vetting of more than 100 legislative proposals in the legislative department.

Her previous assignment was Additional Secretary in the Legislative Department, Ministry of Law & Justice, Government of India.

She has also practiced law for a period of 6 years (1979-1985) and served as an Assistant professor at Indore for some time.

Further she has been a visiting scholar in Japan and Australia and published a number of articles in various journals and is co-author of two books.

ANSWER: Both a and b

Explanation:
The first order issued by the recently-established Insolvency and Bankruptcy Board of India (IBBI) is expected to influence many firms, including well-known consultancies that are eyeing the huge market for stressed assets and debt resolution.

In its March 2 order, IBBI rejected an application for registration as an Insolvency Professional (IP) by an individual who works with one of the so-called Big Four consultancy firms.

It held that “... an IP must not ‘engage in any employment’, repeat ‘any employment’.

It envisages that a person must not play two roles — profession and employment - simultaneously,” according to the order.

IBBI is not going to grant registration to individuals in such a scenario and so entities that want to be registered will have to form a separate subsidiary with dedicated resources related to insolvency and bankruptcy work.

The law does allow insolvency professional entities or IPEs wherein the majority of partners are registered IPs.”

This segment is going to be extremely large in the future. There is around ?6.6 lakh crore worth of recognised NPAs in the banking sector as of today.

Legal experts say that the first order from IBBI has set a tone on how it is going to interpret the provisions of its regulations and is in line with the views of other regulators.

IBBI: Know More

• IBBI seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
• It has been set up by the code to regulate professionals, information utilities (IUs) and agencies engaged in the resolution of insolvencies of companies.
• It has chairman and 10 members.
• Current chairman is M S Sahoo.
• There four government-nominated members.

ANSWER: Suman Saxena

Explanation:
Former Deputy CAG Suman Saxena and two others have been appointed as whole-time members in Insolvency and Bankruptcy Board of India (IBBI).

Besides Saxena, Mukulita Vijaywargiya and Navrang Saini have also been appointed as the new members.

Vijaywargiya, an officer of Indian Legal Service, is working as Additional Secretary in Ministry of Law and Justice.

Saini, who belongs to Indian Corporate Law Service, is Director General in Ministry of Corporate Affairs.

They have been appointed to the board for five years or till completion of 65 years of age, an order issued by the Personnel Ministry said.

The board is mandated to regulate the functioning of insolvency professionals, insolvency professional agencies and information utilities under the Insolvency and Bankruptcy Code.

The code is meant for insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.

ANSWER: Insolvency and Bankruptcy Board of India

Explanation:
Government of India has come out with another set of draft rules including liquidation of insolvent corporate persons under the Insolvency and Bankruptcy code

• As part of implementing the code, government of India has constituted the Insolvency and Bankruptcy Board of India
• Draft norms will be finalised after taking the stakeholder views into account
• Notified by the government in May, code seeks consolidation and amendment of laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a timely manner
• Latest set of draft regulations relate to liquidation of insolvent corporate persons, insolvency resolution processes for corporate persons and application to the judicial authority
• Ministry has also issued draft regulations for registration of insolvency professionals, agencies and model bye-laws
• The IBBI chaired by MS Sahoo will have 10 members
• Apart from the chairman currently there are 4 government nominated members and the rest will be appointed in the coming months.