2 April 2019: Sebi on Tuesday issued a circular regarding empanelment of insolvency professionals to be appointed as administrators under the regulator’s framework.
An administrator has to be a person registered as an insolvency professional with the Insolvency and Bankruptcy Board of India (IBBI) and empanelled with the board from time to time.
The IBBI has been set up under the Insolvency and Bankruptcy Code.
Sebi has issued a circular on empanelment of insolvency professionals to be appointed as administrator, remuneration and other incidental and connected matters under its norms.
During the pendency of the insolvency assignment, the appointed administrator shall neither withdraw consent nor surrender registration to the IBBI Board or membership to the Insolvency Professional Agency (IPA), according to the circular.
In case of such withdrawal or refusal, the matter would be referred to the IBBI for suitable action.
The administrator can also appoint an independent chartered accountant to verify the details of money raised, including payment already made to investors. Sebi appoints administrators in case of entities where investors’ money has to be refunded.
The remuneration payable to administrator shall be in accordance with IBBI’s Liquidation Process norms, the circular said.
Besides, there would be different fee slabs for regular and forensic audits carried out during the insolvency process by chartered accountants.
Similarly, the regulator also specified percentage as fees for registered valuer and registrar and share transfer agent on the amount valued.
Categories: Legal update