In the last two months, the disciplinary committee of the Insolvency and Bankruptcy Board of India (IBBI) either cancelled or suspended the registrations of nine insolvency professionals for violating their code of conduct and failing in oversight.
On July 3, the committee disqualified an insolvency professional for orchestrating a systemic misuse of the insolvency process across 10 interconnected corporate entities.
Against this backdrop, the regulator’s September 9 circular urging “due diligence by Insolvency Professionals regarding misuse of IBC framework” was a long time coming.