IBBI to fix minimum fee slabs from Oct 1 for insolvency professionals

The new rules have also paved the way to allow lenders to pay resolution professionals based on how soon a resolution plan is finalised

The Insolvency and Bankruptcy Board of India (IBBI) has prescribed minimum fee slabs for resolution professionals representing bankrupt firms from October 1 onwards so that such professionals are adequately compensated.

Resolution professionals(RP) are enrolled with IBBI and they are involved in the dissolution process of an insolvent individual or firm. These professionals are authorised to act on behalf of such insolvent entities.

The change attempts to secure the financial independence of such professionals who have to take important decisions to address the interests of both lenders and borrowers during the insolvency process.

Simran Nandwani, Resident Counsel of Cornellia Chambers says