Regulation 7 Surrender of registration
(1) An insolvency professional agency may submit an application for surrender of a certificate of registration to the Board,
providing –
(a) the reasons for such surrender;
(b) the details of all the pending or on-going engagements under the Code of the insolvency professionals enrolled with
it;
(c) details of its pending or on-going activities; and
(d) the manner in which it seeks to wind-up its affairs as an insolvency professional agency.
(2) The Board shall within seven days of receipt of the application, publish a notice of receipt of such application on its
website and invite objections to the surrender of registration, to be submitted within fourteen days of the publication of the
notice.
(3) After considering the application and the objections submitted under sub-regulation (2), if any, the Board may within
thirty days from the last date of submission of objections, approve the application for surrender of registration subject to
such conditions as it deems fit.
(4) The approval under sub-regulation (3) may require the insolvency professional agency to-
(a) discharge any pending obligations; or
(b) continue its functions till such time as may be specified, to enable the enrolment of its members with another
insolvency professional agency.
(5) The Board, after being satisfied that the requirements of sub-regulation (4) have been complied with, shall publish a
notice on its website stating that the surrender of registration by the insolvency professional agency has taken effect.
VL Note : –
Regulation 8 Disciplinary proceedings
(1) Based on the findings of an inspection or investigation, or on material otherwise available on record, if the Board is of the
prima facie opinion that sufficient cause exists to take actions permissible under section 220, it shall issue a show-cause
notice to the insolvency professional agency.
(2) The show-cause notice shall be in writing, and shall state-
(a) the provisions of the Code under which it has been issued;
(b) the details of the alleged facts;
(c) the details of the evidence in support of the alleged facts;
(d) the provisions of the Code, rules, regulations or guidelines thereunder allegedly violated, or the manner in which the
public interest is allegedly affected;
(e) the actions or directions that the Board proposes to take or issue if the allegations are established;
(f) the manner in which the insolvency professional agency is required to respond to the show-cause notice;
(g) consequences of failure to respond to the show-cause notice; and
(h) procedure to be followed for disposal of the show-cause notice.
(3) The show- cause notice shall enclose copies of relevant documents and extracts of relevant portions from the report of
investigation or inspection, or other records.
(4) A show-cause notice issued shall be served on the insolvency professional agency in the following manner-
(a) by sending it to the insolvency professional agency at its the registered office, by registered post with
acknowledgement due; or
(b) by an appropriate electronic means to the email address provided by the insolvency professional agency to the
Board.
(5) The Board shall constitute a Disciplinary Committee for disposal of the show- cause notice.
(6) The Disciplinary Committee shall dispose of the show-cause notice assigned under (5) by a reasoned order in adherence
to principles of natural justice.
(7) The Disciplinary Committee shall endeavour to dispose of the show-cause notice within a period of six months of the
assignment.
(8) The Disciplinary Committee shall consider the submissions, if any, made by the insolvency professional agency.
(9) After considering the relevant material facts and circumstances and material on record, the Disciplinary Committee shall
dispose of the show-cause notice by a reasoned order.
(10) The order in disposal of as show-cause notice may provide for-
(a) no action;
(b) warning;
(c) any of the actions under section 220(2) to (4); or
(d) a reference to the Board to take any action under section 220(5).
(11) The order passed under sub-regulation (10) shall not become effective until thirty days have elapsed from the date of
issue of the order unless the Disciplinary Committee states otherwise in the order along with the reason for the same.
(12) The order passed under sub-regulation (10) shall be issued to the insolvency professional agency immediately, and
published on the website of the Board.
(13) If the order passed under sub-regulation (10) suspends or cancels the registration of the insolvency professional agency,
the Disciplinary Committee shall require the insolvency professional agency to-
(a) discharge pending obligations;
(b) continue its functions till such time as may be specified, to enable the enrolment of its members with another
insolvency professional agency; and
(c) comply with any other directions as considered appropriate.
VL Note : –
An appeal may be preferred under section 202 of the Code, within a period of thirty days of receipt the impugned order in the
manner prescribed in Part III of the National Company Law Tribunal Rules, 2016.
VL Note : –