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Under section 206 of the IBC, 2016, a person may render services as a resolution professional or liquidator only if he is registered with the Board and enrolled as a member of which kind of body?

Question and options

Under section 206 of the IBC, 2016, a person may render services as a resolution professional or liquidator only if he is registered with the Board and enrolled as a member of which kind of body?

  1. A professional institute such as ICAI

  2. An information utility

  3. An insolvency professional agency

  4. A registered valuers organisation

Answer and explanation

Correct answer: C - An insolvency professional agency

Section 206 of the Insolvency and Bankruptcy Code, 2016 allows only a person enrolled as a member of an insolvency professional agency and registered with the Insolvency and Bankruptcy Board of India to act as an insolvency professional (see also section 3(19)). The Indian Institute of Insolvency Professionals of ICAI is one such agency, but ICAI itself is not. An information utility stores financial information, and a registered valuers organisation enrols valuers.

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