Question
Which statute governs insolvency
professionals?Solution
Insolvency professionals are regulated and governed primarily by the Insolvency and Bankruptcy Code, 2016 in India. The IBC provides a comprehensive framework for insolvency resolution and bankruptcy proceedings for individuals, companies, and partnerships. It establishes the roles and responsibilities of various stakeholders in the insolvency process, including insolvency professionals who play a crucial role in managing and administering the affairs of insolvent entities during the resolution process. Therefore, the IBC is the statute that specifically governs insolvency professionals in India.
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