Marking the start of a "new regime", the Insolvency and Bankruptcy Code is all set to be operational from tomorrow while as many as 15 insolvency professionals have been registered under it.
Describing the Code as the next major reform undertaken by the government after GST (Goods and Services Tax), Corporate Affairs Secretary Tapan Ray today said that a "new regime would be coming in from tomorrow".
The Insolvency and Bankruptcy Board of India (IBBI) has been set up under the Code that 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.
As many as 15 insolvency professionals and three insolvency professional agencies have already been registered with the IBBI.
So far, four sets of regulations have been issued by the IBBI. These pertain to resolution process for corporate persons, insolvency professionals, model bye-laws and governing board of insolvency professional agencies, and the insolvency professional agencies.
Joint Secretary at the Corporate Affairs Ministry Amardeep Singh Bhatia said the game is just beginning now with the Code becoming operational.
"We have to ensure that it is played in a fair manner and that the outcome is a win-win for everyone," Bhatia, who has been working on the Code, said.
IBBI Chairman M S Sahoo said that insolvency professionals would be really working towards economic liberty.
"Insolvency professionals to me is an institution which will be really working at the basic foundations of economic liberty...," he added.
They were speaking at a function to give away certificate of registration to 15 insolvency professionals as well as to thei insolvency professional agency floated by the Institute of Cost Accountants of India (ICAI).
ICSI (Institute of Company Secretaries of India) and ICAI (Institute of Chartered Accountants of India) have also registered not-for-profit companies under the Code to act as insolvency professional agencies.
Earlier in the day, ICSI President Mamta Binani said the Code would help quicker resolution of cases and unlock value of assets.
Among others, advocates, chartered accountants, company secretaries and cost accountants with 15 years of experience in their respective fields can serve as insolvency professionals.
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