IBBI proposes limiting number of assignments handled by IPs to check delays

The IBBI has floated a discussion paper seeking comments from the industry on this matter by July 25; Discussion paper limits maximum assignments to 5

The insolvency regulator has proposed restricting the number of assignments handled by an insolvency professional (IP) to five, saying a few of them are handling too many assignments under the IBC.

The Insolvency and Bankruptcy Board of India (IBBI) has floated a discussion paper seeking comments from the industry, by July 25, on this matter, “given the expansive and intense responsibilities of an IP in corporate processes”.

“The restriction will put a check on undesirable instances of delay and disturbance to the processes led by IPs,” the discussion paper said. IBBI has devised a matrix to decide the number of assignments an