Question

39. Consider the following statements about Insolvency and Bankruptcy Board of India (IBBI):
1. It functions under Ministry of Finance.
2. It was given statutory powers through the Insolvency and Bankruptcy Code.
3. Insolvency and Bankruptcy Code does not cover individuals.
Which of the above statement(s) is/are incorrect?

• A. Only 1 and 2
• B. Only 2 and 3
• C. Only 1 and 3
• D. All of the above

Answer 1

The correct option is C Only 1 and 3

1. The Insolvency and Bankruptcy Board of India (IBBI) has notified regulations for inspection and investigation of service providers registered with it.
2. IBBI is the regulator for overseeing insolvency proceedings of service providers like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India.
3. It was given statutory powers through the Insolvency and Bankruptcy Code. It functions under Ministry of Commerce.
4. The Code provides for a market-determined and time-bound resolution of insolvency proceedings.
5. It covers Individuals, Companies, Limited Liability Partnerships and Partnership firms.
6. It attempts to simplify the process of insolvency and bankruptcy proceedings and speed up the resolution process for stressed assets in the country.