IBBI notifies the insolvency and bankruptcy regulations

Given the importance of subordinate legislations for the various processes under the Code, it is essential that the IBBI has a structured, robust mechanism, which includes effective engagement with the stakeholders, for making regulations, a note by Ministry of Corporate Affairs (MCA) said.

The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Mechanism for Issuing Regulations) Regulations, 2018, said the government on Tuesday.
 
The Insolvency and Bankruptcy Code, 2016 (Code) is a modern economic legislation.
 
An official note by the Ministry of Corporate Affairs (MCA) said Section 240 of the insolvency law empowers IBBI to make regulations subject to the conditions.
 
The conditions to the regulations are: to carry out the provisions of the Code; are consistent with the Code and the rules made thereunder; are made by a notification published in the official gazette; and are laid, as soon as possible, before each House of Parliament for 30 days.
 
Given the importance of subordinate legislations for the various processes under the Code, it is essential that the IBBI has a structured, robust mechanism, which includes effective engagement with the stakeholders, for making regulations, the report adds.
 
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, it notified.
 
"In sync with this philosophy and the statutory requirement, the IBBI notified the Insolvency and Bankruptcy Board of India (Mechanism for Issuing Regulations) Regulations, 2018 (Issuing Regulations) to govern the process of making regulations and consulting the public," said MCA.
 
The regulator will put the draft of proposed regulations on its website to seek public comments.
 
Source: PIB, media reports

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