Continuing efforts to ensure a more conducive regulatory framework for stakeholders, IBBI has sought comments from the public on existing regulations under the Insolvency law. IBBI is a key entity in implementing the IBC. IBBI said that they may contemplate, at leisure, the important issues in the extant regulatory framework that hinder transactions and offer alternative solutions to address them. IBBI said in a press release that “This is akin to crowd sourcing of ideas. This would enable every idea to reach the regulator. Consequently, the universe of ideas available with the regulator would be much larger and the possibility of a more conducive regulatory framework much higher”.
According to the regulator, IBBI, despite the best of efforts and intentions, a regulator may not always have the understanding of ground realities, as much and as early as the stakeholders and the regulated may have, particularly in a dynamic environment. Further, it noted that comments received from the public between April 13 and December 31, 2020 would be processed together and the following due process, regulations would be modified to the extent considered necessary. The press release issued on 4th May, 2020 said that “It will be the endeavour of the IBBI to notify modified regulations by March 31, 2021 and bring them into force on April 1, 2021”. It also added that public consultation enables collective choice and hence plays an important role in the evolution of the regulatory framework.
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