IBBI raises regulatory fees to decrease dependency on government funding 

The Insolvency and Bankruptcy Board of India (IBBI) has suggested levying a ‘regulatory fee’ of 0.25 percent of the realisable value to creditors in cases where the recovery exceeds the liquidation value of stressed assets. The idea has been proposed in an effort to become self-sufficient and less dependent on government funding. Additionally, the IBBI has recommended charging 1 percent of the resolution cost for any professional services or other expenses. The regulator has increased the fees it receives from insolvency professionals (IPs), IP entities, and the information utility (IU) at the same time. From 1 October, the revised fee structures will go into effect. Furthermore, the regulator has mandated that an IP must pay a fee equal to 1 percent of the income from such professional services in the previous financial year. IPs are currently required to pay only 0.25 percent. IP entities will also be required to pay a fee equal to 1 percent of their revenues. The information utility will now be required to pay an annual charge of 10 percent of its revenue from the previous financial year by 30 April of each year. Such an utility is currently obligated to pay the regulator Rs 50 lakh as an annual fee. A penalty interest rate of 12 percent per year will be applied to any late payments. The regulator has also suggested doubling the non-refundable application fees for IPs and IP agencies to Rs 20,000 and Rs 2 lakh, respectively. The application fee for an information utility will also double to Rs. 10 lakh, and its registration/renewal charge will also increase from Rs. 50 lakh to Rs. 1 crore. The IBBI, which was only established in late 2016, is the most recent financial market regulator. As per the latest-accessible report for Financial Year 2021, the IBBI relied primarily on government funding for its operations and only managed to fulfil around a fourth of its budget requirements from fees. In FY21, it received a grant from the government worth Rs 26.58 crore. Its entire expenditures came to Rs 28.12 crore, and its internal revenue, which includes service provider fees from IP agencies, IPs, and IU, was Rs 6.90 crore. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.