Insolvency professional entities that are enrolled as members of the Indian Institute of Insolvency Professionals of ICAI (IIIPI) will now have access to the peer review mechanism.
Peer Review is facilitated by experienced insolvency professionals (IPs) to serve as a benchmark for professional services and adherence to standards and principles related to professional assignments under the Insolvency and Bankruptcy Code (IBC).
"The Indian Institute of Insolvency Professionals of ICAI has recently decided to extend the Peer Review Framework to Insolvency Professional Entities (IPEs) that are enrolled as its members," the release said.
The Insolvency professional entities (IPEs) play an important role by offering support services to insolvency resolution professionals (IRPs), resolution professionals (RPs), and liquidators.
Their responsibilities include verifying and processing creditors' claims, finalising Committee of Creditors (CoC) meeting agendas, and ensuring statutory compliance, among other tasks.
"The decision to bring IPEs for subjecting these to peer review will improve the quality of their service and help in enhancing the confidence of various stakeholders," said Ashok Haldia, Chairman, IIIPI Board.
In addition to providing support services, IPEs have the capacity to independently undertake insolvency assignments.
The peer review is obligatory for IPs associated with the Indian Institute of Insolvency Professionals of ICAI (IIIPI) who have managed or been involved in ten or more cases of Corporate Insolvency Resolution Process (CIRP) or liquidation within the three years following the launch of the framework in July 2022.
Presently, peer reviews for over 30 such professionals are in progress.