The Insolvency and Bankruptcy Board of India has notified the procedure that needs to be devised for issuing regulations under the insolvency law.
An official release issued today notified that for making or amending regulations under the Insolvency and Bankruptcy Code, a set of procedures would be followed.
Section 196 (1) (s) of the Code requires the IBBI to specify mechanisms for issuing regulations, including the conduct of public consultation processes, before notification of regulations.
Under the mechanism, as stated by the notice, a draft of regulations would be put out for public consultations as well as a statement of the problem that the proposed regulation seeks to address. Among others, there would be an economic analysis of the proposed regulations and a statement carrying relevant norms advocated by international standard-setting agencies and the international best practices.
“The IBBI shall allow at least twenty-one days for the public to submit their comments. If the governing board (of the IBBI) decides to approve regulations in a form substantially different from the proposed regulations, it shall repeat the process under the issuing regulations,” the release said.
The release also mentioned that “…the IBBI is of the opinion that certain regulations are required to be made
or existing regulations are required to be amended urgently.”
In case, there is an urgent need for issuing or amending regulations, then the consultation process could be done away with.
Read the notification here: