The Insolvency and Bankruptcy Board of India notifies the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 .
Under this Regulation, the board shall order to inspect or inspect the service providers defined under Section 2(1)(j) of regulation to ascertain whether adequate internal control systems, procedures and safeguards have been established and are being followed by a service provider to fulfill its obligations under the relevant regulation.
As per structure, the regulation lays down the procedure for inspection and investigation inspecting authority has to submit interim inspection report as prescribed under section 6 of the regulation, to the board.
Further, the regulation also provides for, the conduct investigation of the service provider by the board under section 218 of the code.
Under the regulation, Where a direction has been issued by the board or authority, to any person to disgorge the amount under sub section 220 of the code. the board after realization of the disgorgement invite claims from persons, those who have suffered loss on account of the contravention shall submit claims in Form A. The Board will scrutinize the claims and prepare a list of valid claims And disburse such amount proportionately among the valid claimants.