IBBI Floats Discussion Paper on Reducing Compliance by Review of CIRP Forms Submitted by IPs
Moneylife Digital Team 11 June 2024
The Insolvency and Bankruptcy Board of India (Board/IBBI) has released a discussion paper on reducing compliance by reviewing corporate insolvency resolution process (CIRP) forms submitted by insolvency professionals (IPs) to IBBI. The Board seeks public comments by 1 July 2024. 
 
Stating that the need for modifications in the CIRP forms has arisen to eliminate duplication of compliances and streamline the reporting requirements for IPs, IBBI highlights that this reform aims to make significant improvements by reducing the amount of information and data that IPs currently need to submit, with a special emphasis on removing duplication, making the reporting process simpler and more efficient. 
 
It will also help adjust compliance deadlines to reduce the pressure caused by numerous frequently overlapping submission dates, allowing IPs to manage their resources more effectively. The proposed changes will also simplify the compliance process by combining various reporting systems on insolvency professional agencies (IPAs) and IBBI websites into a single, centralised IBBI website, eliminating duplication and making it easier for stakeholders to access and use, the Board says. 
 
IBBI says, "By significantly mitigating the compliance burden faced by IPs, it underscores a commitment to fostering a regulatory environment that is not only robust but also responsive to the evolving needs of stakeholders." 
 
At present, the timelines for filing various CIRP forms are linked to different events such as the insolvency commencement date, public announcement, appointment of RP, issue of information memorandum (IM), and issue of request for resolution plans (RFRP)
 
"This leads to due dates for filing of forms falling on different dates for an IP handling multiple CIRP assignments, making the filing process cumbersome for the IP," IBBI says, suggesting moving to a monthly compliance reporting framework, under which IPs will be required to report the status and progress of the CIRP as on the last day of every month, by filing the applicable forms by 10th day of the following month, except for CP-3B. 
 
Further, recommending changes to the CIRP forms as well as amendment to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, to give effect to the revised forms and filing requirements, IBBI says that the proposed changes to the CIRP forms and the compliance framework aim to significantly reduce the compliance burden on IRs while ensuring that the Board receives relevant and timely information for effective monitoring of the CIRP. 
 
IBBI further stipulates that consolidating various compliance requirements, such as disclosure of costs and relationships, onto the centralised IBBI platform will simplify the process and provide a single-window interface for IPs to fulfil their reporting obligations.
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