The Insolvency and Bankruptcy Board of India (IBBI) has initiated a call for suggestions with the aim of simplifying, streamlining, and reducing the compliance costs associated with regulations under the Insolvency and Bankruptcy Code, 2016.
Empowering Provisions: The IBBI draws its authority from Section 240 in conjunction with sections 188 and 196 of the Insolvency and Bankruptcy Code, 2016 (Code) to establish regulations. The IBBI previously framed the IBBI (Mechanism for Issuing Regulations) Regulations in 2018, which govern the consultation, creation, and review of regulations.
Transparent Public Consultation: The IBBI values transparency and public input when formulating regulations. It follows a two-fold review mechanism:
- Annual Review: Regulations undergo an annual review after soliciting public comments.
- Three-Year Review: A comprehensive review of regulations takes place every three years, evaluating outcomes and intended objectives.
Recent Public Consultation: The last three-year review occurred in 2021. Subsequently, the IBBI published a press release on May 4, 2023, seeking public feedback on regulations for the annual review, with a comment submission deadline of December 31, 2023.
Union Budget Announcement: The Union Budget for FY 2023-24 introduced measures to simplify, ease, and reduce the cost of compliance. The government requested financial sector regulators to perform a comprehensive review of existing regulations, considering feedback from the public and regulated entities. Additionally, they intend to establish time limits for deciding on applications under various regulations.
Inviting Public Suggestions: Building on the budget announcement, the IBBI is inviting suggestions and comments from the public and regulated entities concerning the regulations’ simplification, ease of use, and cost reduction. These suggestions can be submitted online through the IBBI website.
- Website Link: Submit Your Suggestions
Procedure for Comment Submission: The comment submission process aligns with the guidelines outlined in Press Release No. IBBI/PR/2023/05 dated May 4, 2023.
Conclusion: The IBBI’s call for suggestions reflects its commitment to continuous improvement and responsiveness to the evolving needs of the financial sector. By seeking public input, it aims to simplify regulatory compliance, making it more efficient and cost-effective. This proactive approach encourages stakeholder participation in shaping the regulatory landscape, fostering a robust and responsive financial ecosystem.
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Insolvency and Bankruptcy Board of India
Press Release No. IBBI/PR/2023/14 Dated: 12th October, 2023
The Insolvency and Bankruptcy Board of India invites suggestions to simplify, ease and reduce cost of compliance of Regulations notified under the Insolvency and Bankruptcy Code, 2016
Section 240 read with sections 188 and 196 of the Insolvency and Bankruptcy Code, 2016 (Code) empowers the Insolvency and Bankruptcy Board of India (IBBI) to make regulations. IBBI has framed IBBI (Mechanism for Issuing Regulations) Regulations, 2018 providing for the manner of consultation, framing and review of Regulations.
2. Apart from wide and transparent public consultation before making regulations, the IBBI follows a dual-review mechanism of its regulations, as under –
(a) Annual review of Regulations after inviting public comments.
(b) Review of regulations every three years based on set criteria including intended objectives and outcomes achieved.
3. The three year review process has been completed in the year 2021 and IBBI has issued a press release on 4th May 2023 seeking public comments on Regulations for Annual review for this year. The last date for submission of comments and suggestions is 31st December 2023. The comments are being received and examined.
4. One of the Budget Announcements in the Union Budget for FY 2023-24, was as follows:
“100. To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For this, they will consider suggestions from public and regulated entities. Time limits to decide the applications under various regulations will also be laid down.”
5. In furtherance of the same, suggestions/comments from public and regulated entities are invited on the Regulations for simplifying, easing and reducing cost of compliance. The comments may be provided online by visiting the IBBI website at – https://ibbi.gov.in/webfront/regulation_comment.php . The procedure to submit the comments shall be same as provided in Press Release No. IBBI/PR/2023/05 dated 4th May 2023
