MCQs On IBBI Rules and Regulation Part-5

Q.1:- On what basis the existence of a security interest may be proved by a secured creditor:

• Certificate of registration of charge issued by the Registrar of Companies
• Proof of registration of charge with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India
• To records available in an information utility
• All the options are correct

Q.2:- Is there any time limit for making public announcement by the liquidator:

• Within twenty days from his appointment.
• Within fifteen days from his appointment.
• Within five days from his appointment
• Within ten days from his appointment.

Q.3:- The Investigating Authority shall serve a notice of investigation to the service provider before the commencement of investigation:

• at least 10 days
• at least 20 days
• at least 5 days
• at least 15 days

Q.4:- The information utility shall submit the audit report received along with the comments of the Governing Board, if any, to the Board __________from the receipt of there port from the external auditor.

• within four months
• within three months
• within two months
• within one month

Q.5:- An information utility shall:

• The unique identifiers of the registered users
• The unique identifiers assigned to the debts under Regulation 20.
• Maintain a list of the registered users and make the list available to all information utilities and the Board.
• All of the above.

Q.6:- In how much time the Information Utility shall file with the Board a resolution passed for amendments in the bye laws in accordance with Regulation 16 (1) of the IBBI (Information Utilities) Regulations, 2017:

• It shall be filed with the Board within seven days from the date of its passing, for its approval.
• It shall be filed with the Board within ten days from the date of its passing, for its approval
• It shall be filed with the Board within five days from the date of its passing, for its approval.
• It shall be filed with the Board within three days from the date of its passing, for its approval.

Q.7:- The Grievance Redressal Policy shall NOT provide for:

• The functions of the Grievance Redressal Committee
• Grievance related to Human Resources issues
• The constitution of a Grievance Redressal Committee
• The format and manner for filing grievances

Q.8:- What is the time limit within which the Information Utility shall file a printed copy of the amended bye-laws with the Board:

• It shall be filed within ten days from the date when such amendment is made effective.
• It shall be filed within fifteen days from they date when such amendment is made effective.
• It shall be filed within twenty days from the date when such amendment is made effective.
• It shall be filed within five days from the date when such amendment is made effective.

Q.9:- Who shall lay down the Technical Standards, through guidelines, for the performance of core services and other services under the IBBI (Information Utilities) Regulations, 2017:

• The Adjudicating Authority
• The Chairpersons of the IBBI
• The Board
• The Central Government

Q.10:- How many independent directors shall be in the Governing Board of Information Utility (IU):

• More than half of the directors of IU
• More than 30%
• More than 60 %
• More than 40%

Q.11:- What are the functions of a Regulatory Committee formed by the Information Utility:

• It shall oversee the human resource functions of the IU.
• It shall oversee the legal cases of the IU.
• It shall oversee the information utility’s compliance with the Code.
• It shall oversee the finance and accounts section of the IU.

Q.12:- Which among the following will be considered as ‘fit and proper person’ for eligibility as being the member of the board of the information utility:

• Where a person has been sentenced to imprisonment for a period of seven years or more
• The financial solvency of the person is not good.
• Where a person has been sentenced to imprisonment for a period of less than six months
• The integrity, reputation and character of the person is doubtful.

Q.13:- No meeting of the Governing Board shall be held without the presence of ____________:

• at least three independent director.
• at least one independent director.
• at least four independent director.
• at least two independent director.

Q.14:- A registered user may submit information:

• to any information utility
• to the any other information utility as per the approval of the information utility in which he is registered
• to the information utility, in which he is registered
• to such other information utility, as the Board may permit

Q.15:- An information utility shall not;

• Use the information stored with it for any purpose other than providing services under these Regulations, without the prior approval of the Board
• Seek data or details of users except as required for the provision of the services under these Regulations
• Outsource the provision of core services to a third-party service provider
• All the options are correct.

Q.16:- A debt transaction has creditor A and debtor B. How A and B may submit information about the debt to information utility (IU) X and Y:

• Creditor A and B may submit information any one IU only.
• Creditor A may submit information about the debt to IU- X, while creditor B may submit information about the same debt to IU-Y.
• Creditor B may submit information to IU-Y only.
• Creditor A may submit information to IU- X only.

Q.17:- The bye- laws of the Information Utility shall provided for:

• risk management, right of users and Grievance Redressal mechanism
• Publication of the bye-laws at the website of the Information Utilities as amended/ up- to-date
• the manner and process of providing core services and other services under these Regulations
• All of the above

Q.18:- In which Form, a person desirous for registration as an information utility may make an application to the Board:

• Form B
• Form D
• Form A
• Form C

Q.19:- No person shall at any time, directly or indirectly, either by itself or together with persons acting in concert, acquire or hold___________ of the paid-up equity share capital or total voting power of an information utility:

• more than ten percent
• more than twenty percent
• ten per cent
• twenty ten percent

Q.20:- What is the amount of fee, a person desirous for registration as an information utility shall pay:

• Refundable application fee of five lakh rupees
• Refundable application fee often lakh rupees
• Non-refundable application fee of five lakh rupees.
• Non-refundable application fee often lakh rupees

Q.21:- An Information Utility shall intimate to the Board, if a person holding more than _______directly or indirectly, of its paid-up equity share capital or total voting power ceases to hold at Least _________ directly or indirectly, of its paid-up equity share capital or total voting power, within fifteen days from such cessation.

• Five per cent/ Five percent
• Two percent/ Two percent
• Five per cent/ Five percent
• Three percent/ Three percent

Q.22:- How much time before the expiry of registration, an information utility shall, make an application for renewal

• At least eight months
• At least six months
• At least two months
• At least four months

Q.23:- What is the amount of fee payable annually by the Information Utility to the Board, within fifteen days from the end of every year from the date of grantor renewal of the certificate of registration.

• Fifty lakh rupees
• One Hundred Lakh rupee
• Twenty five Lakh rupees
• Seventy Five lakh rupees

Q.24:- When an application/ renewal for registration of Information Utilities is made by any person, the Board shall acknowledge such application made under this Regulation ___________of its receipt.

• Within five days
• Within seven days
• Within nine days
• Within three days

Q.25:- How much amount of fee, the Information Utility shall have to pay to the Board, within fifteen days of receipt of intimation of registration or renewal from the Board.

• Seventy Five lakh rupees
• One Hundred Lakh rupees
• Fifty lakh rupees
• Twenty five lakh rupees

Q.26:- In which Form the Board may grant or renew a certificate of registration to the applicant as an information utility:

• Form C
• Form D
• Form B
• Form A

Q.27:- How much amount of fee, the Information Utility shall have to pay to the Board, within fifteen days of receipt of intimation of registration or renewal from the Board.

• Fifty lakh rupees
• Seventy Five lakh rupees
• One Hundred Lakh rupees
• Twenty five lakh rupees

Q.28:- Where the applicant do not fix the expenses to be incurred on or by the IRP, then who will fix:

• The Board
• The Central Government
• The Adjudicating Authority
• The Corporate Debtor

Q.29:- Committee with operational creditors shall have voting rights:

• In equal proportion, irrespective of the debt due.
• In proportion of the debt due to such creditor, to the total debt
• As per the decision taken by such committee.
• In proportion of the debt outstanding for one year or less.

Q.30:- A meeting of the committee shall be quorate if members of the committee representing of the voting rights a represent either in person or by video conferencing or other audio and visual means:

• Thirty-three percent
• At least thirty-three percent
• At least forty-three percent
• Forty -three percent

Q.31:- The interim resolution professional shall file a report certifying the constitution of the committee to the Adjudicating Authority on or before the expiry of_________ from the date of his appointment.

• Twenty-one days
• Seven days
• Twenty eight days
• Fourteen days

Q.32:- A transaction shall be considered an extortionate credit transaction under section 50 (2) where the terms:

• Are unconscionable under the principles of law relating to contracts.
• Equire the corporate debtor to make exorbitant payments in respect of the credit provided
• Options A or B both are correct.
• None of the above.

Q.33:- Who shall bear the cost of proving the debt:

• The Insolvency Professional
• The Corporate Debtor
• The Creditor
• The Adjudicating Authority

Q.34:- The resolution professional shall circulate the minutes of the meeting by electronic means to all members of the committee __________of the conclusion of the meeting.

• after twenty four hours
• after forty-eight hours
• within forty eight hours
• within twenty four hours

Q.35:- When the interim resolution professional shall convene the first meeting of the committee of creditors:

• within fourteen days of filing the report(s) to the Adjudicating Authority.
• within twenty eight days of filing the report(s) to the Adjudicating Authority.
• within seven days of filing the report (s) to the Adjudicating Authority.
• within twenty one days of filing the report (s) to the Adjudicating Authority.

Q.36:- How much minimum period of notice shall be required for convening of the meeting of the creditors:

• Fourteen days’ notice in writing to every creditor.
• Twenty eight days’ notice in writing to every creditor.
• Seven days’ notice in writing to every creditor.
• Twenty one days’ notice in writing to every creditor.

Q.37:- Fast Track Process Period” means:

• The period of One Hundred Eighty days beginning from the fast track commencement date and ending on the One Hundred Eightieth day.
• The period of forty five days beginning from the fast track commencement date and ending on the forty fifth day.
• The period of Two Hundred Seventy days beginning from the fast track commencement date and ending on the Two Hundred Seventieth day.
• The period of ninety days beginning from the fast track commencement date and ending on the ninetieth day.

Q.38:- In which form the an insolvency professional shall make a public announcement:

• Form B
• Form D
• Form A
• Form C

Q.39:- How many Research Associates and Consultants may be engaged by the Board:

• It is at the discretion of the Chairperson of the Board.
• The Board may decide, from time to time, the number of the Research Associates and Consultants to be engaged.
• Five Research Associates and Five
• The Executive Director of the Board shall decided.

Q.40:- Whether the Board may retire an employee before the age of 60 years:

• The Board may retire an employee on or at any time after the completion of 58 years of age or 30 years of service, whichever is earlier, by giving him three months’ notice in writing.
• The Board may retire an employee on or at any time after the completion of 58 years of age or 28 years of service, whichever is earlier, by giving him three months’ notice in writing.
• The Board may retire an employee on or at any time after the completion of 55 years of age or 30 years of service, whichever is earlier, by giving him three months’ notice in writing.
• No, the age of retirement is 60 years of age.

Q.41:- What is the quorum of the Advisory Committee Meetings:

• Fifty per cent of the existing strength of the Advisory Committee shall constitute quorum for its meetings.
• Sixty percent of the existing strength of the Advisory Committee shall constitute quorum for its meetings.
• Forty percent of the existing strength of the Advisory Committee shall constitute quorum for its meetings.
• Forty five percent of the existing strength of the Advisory Committee shall constitute quorum for its meetings.

Q.42:- Which of the following Advisory Committees can be constitute by the Board:

• Advisory Committee on Corporate Insolvency and Liquidation.
• Advisory Committee on Individual Insolvency and Bankruptcy.
• Advisory Committee on Service Providers.
• All the options are correct.

Q.43:- Who shall monitor the professional activities and conduct of professional members for their adherence to the provisions of the Code, rules, regulations and guidelines issued there under:

• The IBBI
• The Central Government
• The IPA through Monitoring Policy
• The Adjudicating Authority

Q.44:- How many independent directors should be present in the meeting of the Governing Board:

• At least two independent director
• At least three independent director
• At least one independent director
• No need of presence of independent director

Q.45:- What is meaning of “Governing Board” means:

• IBBI Governing Board
• The Board of Directors, as defined under section 2 (10) of Companies Act, 2013 of the company registered as an insolvency professional agency
• Board of Governing Body
• None of the above

Q.46:- The Governing Board may amend the bye­ laws by a resolution passed by votes in favour being __________ if any, cast against the resolution, by the directors.

• Not less than three times the number of the votes.
• Not less than 51 % of the number of the votes.
• Not less than 61% of the number of the votes.
• Not less than 71% of the number of the votes

Q.47:- How many directors in the governing Board of IPA shall be insolvency professionals:

• Not more than one half of the directors.
• All the directors should be insolvency professionals
• Not more than one fourth of the directors.
• Not more than three-fourth of the directors.

Q.48:- The insolvency professional agency shall publish its bye-laws, the composition of all committees formed, and all policies created under the bye-laws

• On its website of Insolvency Professional Agency
• On the website of the IBBI
• In one in English News paper
• In two newspapers, one in English and one in Regional Language.

Q.49:- All payments out of the account by the liquidator shall be made by cheques drawn or online banking transactions against the bank account:

• Above Five Thousand rupees
• Above Ten Thousand rupees
• Five Thousand rupees
• Ten Thousand rupees

Q.50:- What is the treatment of uncalled capital or unpaid capital contribution in the liquidation process:

• The liquidator shall realize any amount due from any contributory to the corporate debtor.
• the liquidator shall be entitled to call and realize the uncalled capital of the corporate debtor and to collect the arrears.
• It has to be forgone
• Option A and B are correct.