{"id":141151,"date":"2017-07-07T10:39:40","date_gmt":"2017-07-07T05:09:40","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=141151"},"modified":"2017-07-07T10:58:25","modified_gmt":"2017-07-07T05:28:25","slug":"comments-invited-on-regulations-notified-under-the-insolvency-and-bankruptcy-code-2016","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/07\/07\/comments-invited-on-regulations-notified-under-the-insolvency-and-bankruptcy-code-2016\/","title":{"rendered":"Comments invited on Regulations notified under the Insolvency and Bankruptcy Code, 2016"},"content":{"rendered":"

The Insolvency and Bankruptcy Code, 2016\u00a0(Code)\u00a0is a modern economic legislation.\u00a0Section 240 of the Code empowers the Insolvency and Bankruptcy Board of India\u00a0(IBBI)\u00a0to make regulations subject to the conditions that the regulations: (a)\u00a0carry out the provisions of the Code,\u00a0(b)\u00a0are consistent with the Code and the rules made there under;\u00a0(c)\u00a0are made by a notification published in the official gazette; and\u00a0(d)\u00a0are laid, as soon as possible, before each House of Parliament for 30 days.<\/p>\n

The IBBI has evolved a transparent and consultative process to make regulations.\u00a0It has been endeavor of the IBBI to effectively engage stakeholders in the regulation making process.\u00a0<\/strong>The process generally starts with a working group making draft regulations.\u00a0<\/strong>The IBBI puts these\u00a0<\/strong>draft regulations out in public domain seeking comments thereon.\u00a0<\/strong>It holds a few round tables to discuss draft regulations with the stakeholders.\u00a0<\/strong>It takes advice of its Advisory Committee.\u00a0<\/strong>The process culminates with the Governing Board of the IBBI finalising regulations and the IBBI notifies them.\u00a0<\/strong>This process endevours to factor in ground reality,\u00a0secures ownership of regulations\u00a0and makes regulations robust and precise, relevant to the time and for the purpose.<\/strong><\/p>\n

Public consultation enables collective choice and hence plays an important role in evolution of regulatory framework.\u00a0The participation of the public, particularly the stakeholders and the regulated, in the regulatory process ensures that the regulations are informed by the legitimate needs of those interested in and affected by regulations.<\/p>\n

Usually, a regulator prepares draft regulations and presents these to the stakeholders to revalidate its understanding of the\u00a0issue the said regulations seek to address, and\u00a0the appropriateness of such regulations to address the issue.\u00a0Based on the inputs from the stakeholders, the regulator finalizes the regulations with modifications, as may be warranted.\u00a0The IBBI has been essentially following this approach and will continue to do so.<\/p>\n

Despite the best of efforts and intentions, a regulator may not always have the understanding of the ground realities, as much and as early as the stakeholders and the regulated may have, particularly in a dynamic environment.\u00a0The stakeholders could, therefore, play a more active role in making regulations.\u00a0They may contemplate, at leisure, the important issues in the extant regulatory framework that hinder transactions and offer alternate solutions to address them, in addition to responding urgently to draft regulations proposed by the regulator.\u00a0This is akin to\u00a0crowd sourcing\u00a0of ideas<\/em>.\u00a0This would enable every idea to reach the regulator.\u00a0Consequently, the universe of ideas available with the regulator would be much larger and the possibility of a more conducive regulatory framework much higher.<\/p>\n

Keeping in view the above, the IBBI invites comments from\u00a0public, including the stakeholders and the regulated, on the regulations already notified under the Code.\u00a0The comments received between 4th<\/sup>\u00a0July, 2017 and 31st<\/sup>\u00a0December, 2017 shall be processed together and following the due process, regulations will be modified to the extent considered necessary.\u00a0<\/strong>It will be the endeavor of the IBBI to notify modified regulations by 31st<\/sup>\u00a0March, 2018 and bring them into force on 1st<\/sup>\u00a0April, 2018.<\/strong><\/p>\n

It is clarified that this is in addition to the extant approach of inviting public comments on draft regulations before notifying them.<\/p>\n

For providing comments, please follow the process as under:<\/p>\n

(i) Visit IBBI website,\u00a0www.ibbi.gov.in<\/a>;<\/p>\n

(ii) Select \u2018Public Comments\u2019;<\/p>\n

(iii)Provide your Name, and Email ID;<\/p>\n

(iv) Select the stakeholder category, namely,<\/p>\n

    \n
  1. Corporate Debtor;<\/li>\n
  2. Creditor to a Corporate Debtor;<\/li>\n
  3. Insolvency Professional;<\/li>\n
  4. Insolvency Professional Agency;<\/li>\n
  5. Insolvency Professional Entity;<\/li>\n
  6. Academics;<\/li>\n
  7. Investor; or<\/li>\n
  8. Others.<\/li>\n<\/ol>\n

    (v) Select the regulations, you wish to make a comment upon, from the dropdown menu, as under:<\/p>\n

      \n
    1. Insolvency and Bankruptcy Board of India\u00a0(Model Bye-Laws and Governing Board of Insolvency Professional Agencies)\u00a0Regulations, 2016<\/a>;<\/li>\n
    2. Insolvency and Bankruptcy Board of India\u00a0(Insolvency Professional Agencies)\u00a0Regulations, 2016<\/a>;<\/li>\n
    3. Insolvency and Bankruptcy Board of India\u00a0(Insolvency Professionals)\u00a0Regulations, 2016;\u00a0\u00a0<\/a><\/li>\n
    4. Insolvency and Bankruptcy Board of India\u00a0(Insolvency Resolution Process for Corporate Persons)\u00a0Regulations, 2016;<\/a><\/li>\n
    5. Insolvency and Bankruptcy Board of India\u00a0(Liquidation Process)\u00a0Regulations, 2016;\u00a0<\/a><\/li>\n
    6. Insolvency and Bankruptcy Board of India\u00a0(Information Utilities)\u00a0Regulations, 2017;\u00a0\u00a0<\/a><\/li>\n
    7. Insolvency and Bankruptcy Board of India\u00a0(Voluntary Liquidation Process)\u00a0Regulations, 2017;<\/a><\/li>\n
    8. Insolvency and Bankruptcy Board of India\u00a0((Fast Track Insolvency\u00a0Resolution Process for Corporate Persons) Regulations, 2017<\/a>; or<\/li>\n
    9. Insolvency and Bankruptcy Board of India\u00a0(Inspections and Investigations)\u00a0Regulations, 2017<\/a>.<\/li>\n<\/ol>\n

      Kindly note that the selected regulations can be found by clicking the pdf icon right next to the \u2018select regulations\u2019 option.<\/p>\n

      (vi) Select the kind of comments you wish to make, namely,<\/p>\n

      (a) General Comments; or<\/p>\n

      (b) Specific Comments.<\/p>\n

      (vii) If you have selected \u2018General Comments\u2019, please select one of the following options:<\/p>\n

        \n
      1. Inconsistency, if any, between the provisions within the regulations\u00a0(intra-regulations);<\/li>\n
      2. Inconsistency, if any, between the provisions in different regulations\u00a0(inter-regulations);<\/li>\n
      3. Inconsistency, if any, between the provisions in the\u00a0regulations with those in the rules;<\/li>\n
      4. Inconsistency, if any, between the provisions in the\u00a0regulations with those in the Code;<\/li>\n
      5. Inconsistency, if any, between the provisions in the regulations with those in any other law;<\/li>\n
      6. Any difficulty in implementation of any of the provisions in the regulations; and<\/li>\n
      7. Any provision that should have been provided in the regulations, but has not been provided; or<\/li>\n
      8. Any provision that has been provided in the regulations, but should not have been provided.<\/li>\n<\/ol>\n

        And then write comments under the selected option.<\/p>\n

        (viii) If you have selected \u2018Specific Comments\u2019,\u00a0please select regulation number and then sub-regulation number, and write comments under the selected regulation \/ sub-regulation number.<\/p>\n

        (ix)You can make comments on more than one regulations, or more than one regulation \/ sub-regulation number, by clicking on more comments and repeating the process outlined above from point 8(v) onwards.<\/p>\n

        (x) Click \u2018Submit\u2019, if you have no more comments to make.<\/p>\n

        Illustration<\/strong><\/p>\n

        If you are a creditor to a corporate debtor and wish to make a specific comment on the sub-regulation (1) of Regulation\u00a06\u00a0relating to Eligibility for appointment of Liquidator as specified in the Insolvency and Bankruptcy Board of India\u00a0(Voluntary Liquidation Process)\u00a0Regulations, 2017.\u00a0The steps that you need to follow are:<\/p>\n

        i. Visit IBBI website,\u00a0www.ibbi.gov.in<\/a>;<\/p>\n

        ii. Select\u00a0\u201cPublic Comments\u201d;<\/p>\n

        iii. Provide your Name and Email ID.<\/p>\n

        iv. Select the stakeholder category, which in this case is\u00a0\u201cCreditor to a Corporate Debtor\u201d<\/p>\n

        v. Select the regulations, which in this case is\u00a0\u201cInsolvency and Bankruptcy Board of India\u00a0(Voluntary Liquidation Process)\u00a0Regulations, 2017;<\/p>\n

        vi. Select \u2018Specific Comments\u2019;<\/p>\n

        vii. Select the regulation \/ sub-regulation number, which in this case is\u00a0\u201cRegulation 6\u201d and \u201cSub Regulation (1)\u201d;<\/p>\n

        viii.Write comment in the box\u00a0\u201cComments\u201d;<\/p>\n

        ix. If you wish\u00a0to\u00a0make\u00a0comment\u00a0on\u00a0another regulations, or another regulation number of the same regulations,\u00a0repeat\u00a0the\u00a0process\u00a0from\u00a0\u2018v.\u2019\u00a0onwards by clicking the icon \u2018More Comments\u2019;<\/p>\n

        x.Click \u2018Submit\u2019, after you\u00a0have\u00a0made\u00a0all\u00a0comments.<\/p>\n

        Ministry of Corporate Affairs<\/p>\n","protected":false},"excerpt":{"rendered":"

        The Insolvency and Bankruptcy Code, 2016\u00a0(Code)\u00a0is a modern economic legislation.\u00a0Section 240 of the Code empowers the Insolvency and Bankruptcy Board of India\u00a0(IBBI)\u00a0to <\/p>\n","protected":false},"author":91,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[],"class_list":["post-141151","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-notifications"],"yoast_head":"\nComments invited on Regulations notified under the Insolvency and Bankruptcy Code, 2016 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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