Authorisation for Assignment explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
An authorisation for assignment is an authorisation to undertake an assignment, issued by an insolvency professional agency to an insolvency professional who is its professional member, in accordance with its bye-laws. Without it, a registered insolvency professional cannot take an assignment under the Code.
The two definitions
| Term | Meaning |
|---|---|
| Assignment | Any assignment of an insolvency professional as interim resolution professional, resolution professional, liquidator, bankruptcy trustee, authorised representative or in any other role under the Code |
| Authorisation for assignment | An authorisation to undertake an assignment, issued by an IPA to its professional member, in accordance with its bye-laws |
Registration with the IBBI under Section 207 makes a person an insolvency professional. It does not, by itself, permit them to take work.
The authorisation for assignment is issued by the agency, not the Board, and must be current. The definition of "assignment" is deliberately wide — IRP, RP, liquidator, bankruptcy trustee, authorised representative or any other role — so there is no role under the Code that falls outside it.
Eligibility — Para 12A of the Model Bye-Laws
A professional member is eligible to obtain an authorisation for assignment if he:
- is registered with the Board as an IP;
- is a fit and proper person in terms of the Explanation to clause (g) of Regulation 4 of the IBBI (Insolvency Professionals) Regulations, 2016;
- is not in employment;
- is not debarred by any direction or order of the Agency or the Board;
- has not attained the age of seventy years;
- has no disciplinary proceeding pending against him before the Agency or the Board; and
- complies, as on the date of application, with requirements on payment of fee to the Agency and the Board, filings and disclosures, continuous professional education, and other requirements under the Code, regulations, circulars, directions or guidelines.
Application, renewal and deemed issue
- The Agency, on an application by its professional member, may issue or renew an authorisation for assignment.
- An application for renewal may be made any time before expiry, but not earlier than ninety days before the date of expiry.
- The Agency considers the application under its bye-laws and either issues or renews in Form B, or rejects with a reasoned order.
- If the AFA is not issued, renewed or rejected within ninety days of receipt of the application, it is deemed to have been issued or renewed.
Validity
An authorisation for assignment issued or renewed by the Agency is valid:
- till 30th June of the year, where the expiry of the one-year period falls between 1st January and 30th June; or
- till 31st December of the year, where the expiry of the one-year period falls between 1st July and 31st December.
Further, if the professional member attains the age of seventy years during this period, the authorisation is valid only till such date.
The half-yearly anchoring means an AFA rarely expires exactly a year after issue — it expires at the next 30 June or 31 December after the one-year point, which is what a practitioner should diarise.
Suspension — Para 23A
The authorisation for assignment stands suspended upon initiation of disciplinary proceedings by the Agency or by the Board.
Suspension is automatic on initiation. It does not await a finding, and its practical effect is immediate: a professional whose AFA is suspended cannot accept a new assignment.
Practical consequences
- Employment disqualifies. A professional member in employment is not eligible, so taking an employed role forfeits the authorisation.
- CPE is a live condition, tested on the date of application — not a background obligation.
- The ninety-day renewal window is both a floor and a ceiling: not earlier than ninety days before expiry, and before expiry.
- The seventy-year limit cuts validity mid-period, so an assignment should not be accepted that extends past that date without checking.
- Deemed issue after ninety days protects the applicant against agency delay, but only where the application was complete.
Compliance checklist
- Confirm the AFA is current before accepting any assignment.
- Diarise the 30 June / 31 December expiry, not the anniversary.
- Apply for renewal within the ninety-day window.
- Keep fees, filings, disclosures and CPE current on the application date.
- Do not take up employment while holding an AFA.
- Check the seventy-year date against assignment duration.
Common mistakes
- Assuming IBBI registration alone permits an assignment.
- Applying for renewal more than ninety days early and having it refused.
- Treating suspension as following a finding rather than initiation.
- Diarising the AFA expiry as one year from issue.