In a unique move, the Insolvency and Bankruptcy Board of India has put out for public consultations, draft norms for governing “the process of making regulations” under the insolvency law.
Public comments have been sought on the draft ‘Insolvency and Bankruptcy Board of India (Mechanism for Issuing Regulations), Regulations, 2018’.
The IBBI is implementing the Insolvency and Bankruptcy Code which provides for market-determined and time-bound resolution process.
According to the board, it is proposing to “make regulations to govern the process of making regulations and consulting the public”.
This is the first time that a regulator in the country has come out with draft norms regarding the regulation-making process.
Given the importance of subordinate legislations for the 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.IBBI Statement
Generally, the process of making norms starts with a working group making draft regulations and then the same are put up for public consultations.
Later, a few round tables to discuss draft regulations with the stakeholders are conducted and then advice of its Advisory Committee is taken.
“The process culminates with the Governing Board of the IBBI finalising regulations and the IBBI notifies them. This process endeavours to factor in ground reality, secures ownership of regulations, imparts democratic legitimacy and makes regulations robust and precise, relevant to the time and for the purpose,” the IBBI said.
Comments have been sought on the draft norms till March 31.
More than 500 cases have been admitted by the National Company Law Tribunal for resolution under the Code, which came into force in December 2016.