In line with the Union Budget for the fiscal year 2023-24, wherein the Union Finance Minister outlined the imperative need to streamline, simplify, and reduce the cost of compliance, the Insolvency and Bankruptcy Board of India (IBBI) is extending an invitation for suggestions and comments from both the public and regulated entities. The objective of this initiative is to seek recommendations for improving and refining the existing regulations to foster a more accessible and cost-effective regulatory environment.
The Finance Minister announced that:
“To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For this, they will consider suggestions from public and regulated entities. Time limits to decide the applications under various regulations will also be laid down.”
The comments and suggestions are an integral part of a comprehensive review process aimed at achieving the Finance Minister’s vision. The specific statement from the Union Finance Minister highlighted the commitment to make financial sector regulations more efficient, with a keen focus on shortening time limits for decision-making under various regulations.
The avenue for providing your input is easily accessible via the IBBI website at https://ibbi.gov.in/webfront/regulation_comment.php. The procedure for submitting comments aligns with the guidelines laid out in Press Release No. IBBI/PR/2023/05, issued on May 4, 2023.
In addition to the ongoing public consultation that precedes the formulation of regulations, the IBBI maintains a dual-review mechanism for its regulatory framework, comprising two key components:
The triennial review was last conducted in 2021, and on May 4, 2023, IBBI initiated a public engagement process to gather input for the annual review of regulations. The deadline for submitting comments and suggestions is set for December 31, 2023. These valuable contributions are actively received and carefully examined by the IBBI.
The authority to establish regulations is conferred upon the Insolvency and Bankruptcy Board of India (IBBI) by the Insolvency and Bankruptcy Code, 2016, under Section 240, in conjunction with sections 188 and 196. In accordance with this empowerment, IBBI has put in place the IBBI (Mechanism for Issuing Regulations) Regulations, 2018, which delineates the procedure for consultation, formulation, and periodic review of regulations. This inclusive approach ensures that the regulatory framework remains responsive, adaptable, and in line with the evolving needs of the financial sector.
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