Regulator sets out on a public consultation programme to make insolvency rules ‘better’
As the Insolvency and Bankruptcy Code (IBC) completes five years of existence, the insolvency regulator has set out on consultation programme to seek ideas from public and stakeholders to make the insolvency regime more effective.
Inviting public and stakeholder comments, the Insolvency and bankruptcy Board of India (IBBI) has said that it is an endeavour of the IBBI to effectively engage stakeholders in the regulation making process.
“Public consultation enables collective choice and hence plays an important role in the evolution of the regulatory framework. The participation of the public, particularly the stakeholders in the insolvency ecosystem ensures that the regulations are informed by the legitimate needs of those interested in and affected by the regulations. In a dynamic environment, despite the best of efforts and intentions, a regulator in such novel and emerging regulatory regime may not always be able to address the ground realities,” says the IBBI in its invitation seeking public comments.
Public can make their comments on IBC between 17 June 2021 and 31 December 2021. After it receives the public and stakeholder comments, the regulator would process the comments and ideas following the due process, regulations will be modified to the extent considered necessary.
The IBBI has said in a statement that it will try to notify modified regulations by 31 March 2022 and bring them into force on 1 April 2022.
To register their comments, one can visit the BBI’s website — www.ibbi.gov.in – and select “Public Comments” page. From the drop-down menu, they can select Comments on Regulations, provide their Name, and Email ID.
Stakeholders can select the stakeholder category — Corporate Debtor, Creditor to a Corporate Debtor, Insolvency Professional, Insolvency Professional Agency, Insolvency Professional Entity, Personal Guarantor to a Corporate Debtor, Proprietorship firms, etc
One will have to then select regulations, select general or specific comments options and then make the comments.
If one selects “Specific Comments”, then he/she will have to select regulation number and then sub-regulation number, and write comments under the selected regulation / sub-regulation number.
One can make comments on more than one regulation, or more than one regulation/sub-regulation number.
Also See: Is IBC losing its sting? Recovery rate drops to 39%
