IBBI seeks public comments on existing insolvency norms

The Insolvency and Bankruptcy Board of India (IBBI) has sought comments from the public on existing regulations under the insolvency law as part of efforts to gather more ideas and if required, amend the norms.

The IBBI is implementing the Insolvency and Bankruptcy Code (IBC), which provides for a market-determined and time-bound resolution process.

"The comments received between April 30, 2018 and December 31, 2018 will be processed together and following the due process, Regulations will be amended to the extent considered necessary.

"It will be the endeavour of the IBBI to notify modified regulations by March 31, 2019 and bring them into force on April 1, 2019," an official release said today.

A similar exercise was undertaken in the previous year and consequently several regulations were amended with effect from April 1, 2018, it added.

According to the release, despite the best of efforts and intentions, a regulator may not always have the understanding of the ground realities, as much and as early as the stakeholders and the regulated may have, particularly in a dynamic environment.

"The stakeholders could, therefore, play a more active role in making regulations. They may contemplate, at leisure, the important issues in the extant regulatory framework that hinder transactions and offer alternate solutions to address them, in addition to responding urgently to draft regulations proposed by the regulator.

"This is akin to crowdsourcing of ideas. This would enable every idea to reach the regulator. Consequently, the universe of ideas available with the regulator would be much larger and the possibility of a more conducive regulatory framework much higher," it added.