Section 208 of the Insolvency and Bankruptcy Code, 2016: Functions and Obligations of Insolvency Professionals
Section 208 identifies the processes in which an insolvency professional performs statutory functions and lays down core duties governing professional conduct, diligence, compliance, inspection of records, submission of proceeding records and performance of functions in the manner specified by law.
Section 208 - Statutory Provision
(1) Where any insolvency resolution, fresh start, liquidation or bankruptcy process has been initiated, it shall be the function of an insolvency professional to take such actions as may be necessary, in the following matters, namely:-
(a) a fresh start order process under Chapter II of Part III;
(b) individual insolvency resolution process under Chapter III of Part III;
(c) corporate insolvency resolution process under Chapter II of Part II;
(d) individual bankruptcy process under Chapter IV of Part III; and
(e) liquidation of a corporate debtor firm under Chapter III of Part II.
(2) Every insolvency professional shall abide by the following code of conduct:-
(a) to take reasonable care and diligence while performing his duties;
(b) to comply with all requirements and terms and conditions specified in the bye-laws of the insolvency professional agency of which he is a member;
(c) to allow the insolvency professional agency to inspect his records;
(d) to submit a copy of the records of every proceeding before the Adjudicating Authority to the Board as well as to the insolvency professional agency of which he is a member; and
(e) to perform his functions in such manner and subject to such conditions as may be specified.
Meaning and Scope of Section 208
Section 208 combines two important aspects of the insolvency profession. Sub-section (1) identifies insolvency, resolution, liquidation, fresh start and bankruptcy processes in which an insolvency professional may be required to take necessary action. Sub-section (2) imposes continuing professional obligations that apply to the conduct of an insolvency professional.
Functions Under Section 208(1)
| Clause | Process |
|---|---|
| (a) | Fresh start order process under Chapter II of Part III. |
| (b) | Individual insolvency resolution process under Chapter III of Part III. |
| (c) | Corporate insolvency resolution process under Chapter II of Part II. |
| (d) | Individual bankruptcy process under Chapter IV of Part III. |
| (e) | Liquidation of a corporate debtor firm under Chapter III of Part II. |
Code of Conduct and Obligations Under Section 208(2)
Reasonable Care and Diligence
An insolvency professional must take reasonable care and diligence while performing duties. The requirement applies across professional assignments and supports careful, independent and responsible performance of statutory functions.
Compliance with Insolvency Professional Agency Bye-Laws
An insolvency professional must comply with the requirements and terms and conditions contained in the bye-laws of the insolvency professional agency of which the professional is a member. Sections 204 and 205 provide the wider statutory framework for the functions and bye-laws of insolvency professional agencies.
Inspection of Records
The insolvency professional must allow the insolvency professional agency to inspect records. This obligation supports the agency's statutory monitoring function under Section 204.
Submission of Proceeding Records
Section 208(2)(d) requires a copy of the records of every proceeding before the Adjudicating Authority to be submitted to both IBBI and the insolvency professional agency of which the professional is a member.
Compliance with Specified Conditions
Under Section 208(2)(e), an insolvency professional must perform functions in the manner and subject to the conditions that may be specified. Detailed professional requirements are therefore also found in the regulations made by IBBI.
Current Regulatory Code of Conduct
The IBBI (Insolvency Professionals) Regulations, 2016 contain a detailed Code of Conduct for Insolvency Professionals in the First Schedule. It supplements the statutory obligations in Section 208 and addresses matters including integrity and objectivity, independence and impartiality, professional competence, representation of correct facts, timeliness, information management, confidentiality, occupation and employment restrictions, remuneration and costs, and gifts and hospitality.
IBBI currently lists the consolidated Insolvency Professionals Regulations as amended up to 20 November 2025. The current consolidated text should be checked when determining the duties applicable to a particular assignment.
Meaning of Insolvency Professional
Section 3(19) defines an "insolvency professional" as a person enrolled under Section 206 with an insolvency professional agency as its member and registered with the Board as an insolvency professional under Section 207.
Related IBC Provisions
Section 3(19): Definition of insolvency professional.
Section 204: Functions of insolvency professional agencies, including monitoring members and laying down standards of professional conduct.
Section 206: Requires enrolment with an insolvency professional agency and registration with IBBI.
Section 207: Registration of insolvency professionals.
Section 218: Investigation of insolvency professional agencies, insolvency professionals and information utilities.
Section 220: Disciplinary action in accordance with the Code.
Section 240: Power of IBBI to make regulations.
Official Legal Resources
India Code - Central Acts and Legislation
IBBI - Insolvency and Bankruptcy Code and Amendment Acts