The Insolvency and Bankruptcy Board of India (IBBI) has invited comments from public on the broad range of regulations it has already notified under the Insolvency and Bankruptcy Code (IBC), as it seeks to ‘crowdsource’ ideas to further strengthen the ecosystem. The comments from the stakeholders, received between April 30 and December 31, will be processed together and following the due process, regulations will be amended to the extent considered necessary, the IBBI said. The regulator will strive to notify modified regulations by March 31, 2019 and bring them into force on April 1 next year, it added.
Explaining the reason behind the latest move, the IBBI stated: “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. This is akin to crowd-sourcing of ideas”.
In an unusual move for any regulator in the country, the IBBI had, in March, also proposed to make regulations to govern the very process of making regulations and consulting the public under the insolvency law. It sought shareholders’ comments by March 31 on the draft ‘Insolvency and Bankruptcy Board of India (Mechanism for Issuing Regulations), Regulations, 2018’.
It also suggested that it would review each regulation every three years unless such an exercise was warranted earlier, subject to conditions including global best practices and experience of its enforcement.
