The Insolvency and Bankruptcy Board of India invites comments from the public on the Regulations notified under the Insolvency and Bankruptcy Code, 2016

6th May, 2022

Section 240 of the Insolvency and Bankruptcy Code, 2016 (Code) empowers the Insolvency and Bankruptcy Board of India (IBBI) to make regulations. For this purpose, IBBI has evolved a transparent and consultative process. It has been the endeavour of the IBBI to effectively engage stakeholders in the regulation making process. The process factors in ground realities, secures ownership of regulations and produces regulations robust and precise, relevant to the market needs at particular time.

2. 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. Further, the stakeholders may contemplate, at leisure, the important issues in the extant regulatory framework that hinder transactions and offer alternate solutions to address them. This is akin to crowdsourcing of ideas. This enables 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 would be much higher. Therefore, IBBI also welcomes public comments on the regulations already notified under the Code.

3. Keeping in view the above, IBBI invites comments from the public, including the stakeholders, on the regulations already notified under the Code till date. The comments received between 6th May, 2022 and 31st December, 2022 shall be processed together and following the due process, regulations will be modified to the extent considered necessary. It will be the endeavor of the IBBI to notify modified regulations by 31st March, 2023 and bring them into force on 1st April, 2023.

1. 4. For providing comments, please follow the process as under :
   1. a. Visit IBBI’s website, www.ibbi.gov.in;
   2. b. Select “Public Comments”;
   3. c. From the drop-down menu, select “comments on regulations”;
   4. d. Provide your Name, and Email ID;
   5. e. Select the stakeholder category, namely,-
      1. i. Corporate Debtor;
      2. ii. Creditor to a Corporate Debtor;
      3. iii. Insolvency Professional;
      4. iv. Insolvency Professional Agency;
      5. v. Insolvency Professional Entity;
      6. vi. Personal Guarantor to a Corporate Debtor;
      7. vii. Proprietorship firms;
      8. viii. Partnership firms;
      9. ix. Academics;
      10. x. Investors;
      11. xi. Others.

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Press Release : https://www.dropbox.com/s/ykwc20xlukakmap/The%20Insolvency%20and%20Bankruptcy%20Board%20of%20India%20invites%20comments%20from%20the%20public.pdf?dl=0