Mumbai, July 10 -- The insolvency and bankruptcy board of India (IBBI) has moved to cap the number of ongoing insolvency or liquidation proceedings that can be handled by an insolvency professional (IP). In a discussion paper released on 1 July, IBBI said an IP can handle a maximum of five assignments if they were handling accounts with a turnover of less than '1,000 crore; four for accounts with a '1,000-5,000 crore a turnover; three cases for '5,000-10,000 crore turnover accounts, and one if the account was over '50,000 crore.
IBBI said a few IPs are handling too many assignments under the Insolvency and Bankruptcy Code, which could be detrimental in the long run. The regulator said the role of an IP is like that of a managing director o...