Through a press release dated October 12, 2023, the Insolvency and Bankruptcy Board of India (IBBI) invited suggestions to “simplify, ease and reduce cost of compliance” of the regulations notified by the Board under the Insolvency and Bankruptcy Code, 2016. The comments have to be shared by December 31, 2023.
The same is pursuant to the announcement made by the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Budget 2023 speech, stating that the financial sector regulators would consider the suggestions of the public and regulated entities in carrying out a “comprehensive review” of the existing regulations.
Before finalising the regulations, the Board conducts public consultation in accordance with the mechanism for issuing regulations. This mechanism was established in accordance with the provisions of the 2016 Code. The Board also has a framework in place for the review of its regulations. This involves the annual review of regulations through receipt of public comments and the review that takes place every three years, assessing the objectives sought to be realised, the actual outcomes, etc. to determine whether the existing regulations need to be amended or repealed.
The Board sought inputs from the stakeholders as part of this year’s annual review in May 2023. Further, the latest three-year review concluded in 2021.