Bankrptcy rule-maker seeks views on cutting red tape to help resolution professionals

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NEW DELHI:The Insolvency and Bankruptcy Board of India (IBBI) plans to reduce the compliance burden of debt resolution professionals so that they can concentrate on stitching together rescue plans for companies under their supervision, the bankruptcy rule-maker said. The idea is to reduce the number of forms and volume of information that resolution professionals have to submit and to make the reporting process simpler and efficient, IBBI said in a discussion paper on lowering the compliance burden of these professionals.

The regulator has sought public feedback on its suggestions by 1 July. The regulator said its enhanced data capture capabilities, particularly creation of a portal, needs to be leveraged to simplify and optimize the forms to be filled by professionals.The move to cut down the amount of information sought from resolution professionals and to streamline reporting by making it a monthly affair from the current method of linking it to the various events will allow professionals to devote more time on the substantive work that they are required to carry out under the bankruptcy code, said Durgesh Khanapurkar, Partner at law firm Desai & Diwanji.

Also Read: Why bankruptcy reforms should be the new govt’s top priorityThere will be a special emphasis on removing duplication, making the reporting process simpler and more efficient, IBBI said. The effort is also to adjust deadlines to reduce the pressure caused by numerous and frequently overlapping submission dates, which will allow professionals to manage their resources more effectively.