Insolvency Professionals, Agencies and Information Utilities

The Code is often described as resting on four pillars: the adjudicating authorities, the IBBI, insolvency professionals and their agencies, and information utilities. The last two form a regulated private infrastructure. Professionals run the processes, agencies regulate them at the front line, and information utilities hold the records that make defaults quick to prove. This note explains each, how they are regulated, and the 2026 shift to a common framework for service providers.

1. Service Providers after 2026

Figure 1: The service providers under the Code

The 2026 Amendment introduced the term service provider in section 3(31A), meaning an insolvency professional, insolvency professional agency, information utility, registered valuer or other person notified by the Central Government who renders services under the Code and is registered with the IBBI. Registered valuers, defined by reference to Chapter XVII of the Companies Act, 2013, were thus brought expressly within the Board's regulatory reach, and the provisions on complaints, investigation and discipline now apply uniformly to all service providers.

2. Insolvency Professionals

• Enrolment and registration, sections 206 and 207. No person may render services as an insolvency professional unless enrolled as a member of an insolvency professional agency and registered with the IBBI.
• Eligibility. The regulations require qualifications such as professional membership or a degree with relevant experience, passing the Limited Insolvency Examination and completing a pre-registration course.
• Authorisation for assignment. Under the regulations, a professional must hold a valid authorisation for assignment issued by the agency before accepting an assignment.
• Functions, section 208(1). Insolvency professionals act as interim resolution professionals, resolution professionals, liquidators, bankruptcy trustees and, after 2026, in the creditor-initiated process.
• Obligations, section 208(2). To take reasonable care and diligence, comply with the Code and the agency's bye-laws, allow inspection of records, submit copies of records to the Board and the agency, and act in accordance with the code of conduct, which stresses integrity, independence and impartiality.

Figure 2: Key features of the professional framework

3. Insolvency Professional Agencies

• Registration, sections 199 to 201. No person may carry on business as an agency or enrol professionals without a certificate of registration from the Board, which may renew, suspend or cancel it after a hearing.
• Functions, section 204. Grant membership, lay down standards of conduct, monitor members' performance, safeguard their interests, suspend or cancel membership, redress grievances against members, and publish information.
• Governance and bye-laws. The Board may regulate the composition of agencies' governing boards, and agencies must frame bye-laws consistent with the Board's model bye-laws (sections 203 and 205)
• Existing agencies. Three agencies are registered, set up by the institutes of company secretaries, chartered accountants and cost accountants.

4. Information Utilities

• Registration, sections 209 to 212. An information utility requires a certificate of registration from the Board, which may regulate its governance.
• Core services, section 213. It must provide core services, accepting, recording, authenticating and providing access to financial information, to any person who meets the specified terms.
• Obligations, section 214. To store information in a universally accessible format, accept electronic submissions, meet service standards, authenticate information with the concerned parties, provide access to authorised persons, and interoperate with other utilities.
• Submission, section 215. Financial creditors must submit financial information and information on assets in which they have a security interest; operational creditors may do so, and after 2026 are to submit it before filing a section 9 application.
• Deemed authentication, 2026. Under the new section 215(4), the debtor must authenticate submitted information within the specified period, failing which it is deemed authenticated.
• In practice. The National E-Governance Services Ltd is the registered information utility; its record of default is relied on as evidence of default in section 7 applications.

5. Discipline

Figure 3: The disciplinary process for service providers

Complaints against any service provider may be made to the Board, which may inspect or investigate, issue a show cause notice where a prima facie case exists, and refer the matter to a disciplinary committee. The committee may impose a penalty, suspend or cancel registration, or direct disgorgement, and its order may be appealed to the NCLAT within 30 days, extendable by 15 (Topic 74). Agencies also take action against their members under their bye-laws.

6. Frequently Asked Questions

Can a chartered accountant act as a resolution professional merely because of his qualification?

No. He must be enrolled with an insolvency professional agency, registered with the IBBI after meeting the eligibility requirements, and hold an authorisation for assignment.

What is the use of an information utility's record of default?

It provides authenticated evidence of a debt and default, which a financial creditor can rely on in a section 7 application, reducing disputes about the existence of default.

What happens if a debtor ignores a request to authenticate information submitted to an information utility?

After the 2026 Amendment, if the debtor does not respond within the specified period, the information is deemed authenticated under section 215(4).

Are registered valuers regulated under the Code?

Yes. Since 2026, registered valuers are service providers under section 3(31A), subject to the IBBI's registration, complaints and disciplinary provisions.

7. Related Topics

• Topic 29: Resolution Professional. Appointment and duties.
• Topic 54: The Liquidator. Appointment, powers and duties.
• Topic 74: IBBI. The regulator.