The Insolvency and Bankruptcy Board of India has sought public comments by December 31 on regulations already notified under the Insolvency and Bankruptcy Code, 2016, in a bid to further strengthen the law to suit changing economic realities.
The Insolvency and Bankruptcy Board of India (IBBI) has sought public comments by December 31 on regulations already notified under the Insolvency and Bankruptcy Code (IBC), 2016, in a bid to further strengthen the law to suit changing economic realities. The move comes amid increased application of the IBC to resolve the issue of massive toxic assets with the banking system, particularly with public-sector banks. The Reserve Bank of India last month selected 12 large non-performing asset (NPA) accounts, which accounted for a quarter of the bad loans of banks, for resolution under the new insolvency law. “The comments received between July 4 and December 31, 2017 shall be processed together and following the due process, regulations will be modified to the extent considered necessary,” the government said in a statement on Thursday. The IBBI will strive to notify modified regulations by March 31, 2018 and bring them into force on April 1 next year, it said. “This process endeavours to factor in ground reality, secures ownership of regulations and makes regulations robust and precise, relevant to the time and for the purpose,” said the statement.