Move to help IBBI attract and retain the best talents, say legal experts
In a bid to attract and retain the best minds, the Insolvency regulator IBBI has modified its regulations to increase the contractual minimum term of its research associates or consultants.
The consolidated monthly remuneration has been revised upwards with 10 per cent annual increase between ₹60,000-₹1,55,000, depending on the consultant/research associate’s experience .
As against the earlier specified contractual minimum term of six months, the minimum term has now been enhanced to one year. The maximum term has been enhanced to three years from the earlier two years. Such terms are extendable to five years, subject to extension of one year at a time.
Tahira Karanjawala, Principal Associate – Karanjawala & Co, said that the latest IBBI move is a welcome step to attract the best minds to for discharging its functions.
The enlarged tenure now offered to the Research Associates and Consultants alongside the revised remuneration will ensure more stability and continuity for the associates and for the functioning of the IBBI.
Further, the liberty afforded to the Chairman to revise remuneration, if needed, is swiftly possible and does not get entangled in governmental red tape. “This will make it easier for the IBBI to attract high quality talent”, Karanjawala said.
Vishesh Sharma, Resident Counsel – Cornellia Chambers, a law firm, said that this latest amendment was essential to accommodate the requirements from the perspective of the Board. “By increasing the monthly remuneration and the minimum period for engagement for such consultants, the Board will be able to increase the morale and retention of such candidates with an overall aim to reduce delay in corporate insolvency process while discharging its function under the insolvency code”, Sharma said.
Sushmita Gandhi, Partner, IndusLaw, said that increase in the contractual term of the research associates or the consultants is a welcome step for the Board. “IBBI, being a significant machinery, regulating insolvency proceedings and entities like Insolvency Professional Agencies, Insolvency Professionals, and Information Utilities in India, requires a consistent association of its key officials entrusted with policy making. Therefore, a longer association of such key officials with the Board would be helpful in the efficient evolution of the insolvency and bankruptcy regime in India”, Gandhi said.