Regulator plans to ease compliance burden on insolvency professionals

The bankruptcy regulator has proposed to reduce the compliance burden on insolvency professionals, who oversee the resolution of stressed assets, without compromising on the accuracy and the comprehensiveness of the information required for decision-making.

It seeks to reduce the amount of information and data that insolvency professionals are currently required to submit, according to a discussion paper floated by the Insolvency and Bankruptcy Board of India (IBBI). The regulator proposes to rationalise compliance deadlines to reduce the pressure caused by numerous and frequently overlapping submission dates. It would also combine various reporting systems into a single, centralized IBBI website, “eliminating duplication and making it easier for stakeholders to access and use”.

“By significantly mitigating the compliance burden faced by IPs (insolvency professionals), it underscores a commitment to fostering a regulatory environment that is not only robust but also responsive to the evolving needs of stakeholders,” the discussion paper said.

The move is part of the broader efforts by authorities to cut down on the compliance burden across categories and ensure greater ease of doing business and winding up failed ventures.