Insolvency professionals are flummoxed by the latest rule from the Insolvency and Bankruptcy Board of India that prohibits them from outsourcing the work related to resolution of a bankrupt company.
“All the assignments in which delegation of authority has taken place by the insolvency professional even if it is with the approval from the Committee of Creditors, the same has to be given a hard relook after this circular,” said Mamta Binani, former president of the Institute of Company Secretaries of India, and an insolvency professional herself.
The IBBI late on Wednesday came with a circular prohibiting outsourcing which many professionals say is confusing.
“It is hereby directed that an insolvency resolution professio…
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