IBBI Notifies the Insolvency & Bankruptcy Board of India Regulations, 2018 (Download PDF)

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Insolvency & Bankruptcy Board of India (IBBI) notified Insolvency & Bankruptcy Board of India (Mechanism for Issuing Regulations) Regulations, 2018. Insolvency & Bankruptcy Code, 2016 (Code) is modern economic legislation. Issuing Regulations are effective from 22nd Oct. , 2018.

Image of Insolvency and Bankruptcy Process

Image of Insolvency and Bankruptcy Process

Image of Insolvency and Bankruptcy Process

Section 240 of Insolvency & Bankruptcy Code, 2016 empowers Insolvency & Bankruptcy Board to make regulations subject to conditions that:

  • Regulations carry out provisions of Code

  • Regulations are consistent w/Code & rules made there under

  • Regulations are made by notification published in official gazette

  • Regulations are laid, as soon as possible, before each House of Parliament for 30 days.

Mechanisms for Issuing Regulations

  • Section 196 (1) (s) of Code requires IBBI to specify mechanisms for issuing regulations, including conduct of public consultation processes, before notification of regulations.

  • IBBI notified Insolvency & Bankruptcy Board of India (Mechanism for Issuing Regulations) Regulations, 2018 (Issuing Regulations) to govern process of making regulations.

  • Issuing Regulations provide that for purpose of making or amending any regulations, IBBI shall upload following documents on its website for seeking comments from public-

  • Draft of proposed regulations

  • Specific provision of code under which board proposes regulations

  • Statement of problem that proposed regulation seeks to address

  • Economic analysis of proposed regulations

  • Statement carrying norms advocated by international standard setting agencies & international best practices, if any, relevant to proposed regulation

  • Manner of implementation of proposed regulations

  • Manner, process & timelines for receiving comments from public

Procedure to Be Followed Post Issuing Notification of Regulations

  • IBBI will now allow at least 21 days for public to submit their comments.

  • It will consider public comments received & upload same on its website along w/general statement of its response on comments, not later than date of notification of regulations.

  • If Governing Board decides to approve regulations in form substantially diff. from proposed regulations, it will repeat process under Issuing Regulations.

  • Regulations will be notified promptly after it is approved by Governing Board & date of their enforcement shall ordinarily be after 30 days from date of notification.

  • Where IBBI is of opinion that certain regulations are required to be made or existing regulations are required to be amended urgently, it may make regulations or amend existing regulations w/approval of Governing Board, w/o following consultation.

What is IBBI?

  • Insolvency and Bankruptcy Board of India (IBBI) was established on 1st Oct. , 2016 under Insolvency & Bankruptcy Code, 2016 (Code).

  • Board is responsible for implementation of Code that consolidates & amends laws relating to reorganization & insolvency resolution of corporate persons, partnership firms & individuals in time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit & balance interests of all stakeholders.

  • It is unique regulator: regulates profession as well as processes.

  • It has regulatory oversight over Insolvency Professionals, Insolvency Professional Agencies, Insolvency Professional Entities & Information Utilities.

  • It writes & enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution & individual bankruptcy under Code.

- Published/Last Modified on: November 30, 2018

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