The Insolvency and Bankruptcy Board of India (IBBI) has taken a significant step toward streamlining financial regulations and reducing the cost of compliance. The IBBI is actively seeking input and suggestions from both the public and regulated entities as part of its commitment to make regulations more efficient and business-friendly.
This move follows a directive made in the Union Budget for the fiscal year 2023-24 by the Union Finance Minister. The Minister emphasized the need to simplify and ease compliance procedures, recognizing the economic benefits of a less burdensome regulatory environment. As a part of this effort, financial sector regulators, including the IBBI, are being encouraged to conduct a comprehensive review of existing regulations.
The IBBI’s call for suggestions and comments on regulatory simplification is open to the public and regulated entities alike. This approach ensures that a wide range of perspectives is considered in the regulatory review process.
To facilitate this, the IBBI has provided an online platform where individuals and entities can submit their comments. You can access this platform by visiting the IBBI website at https://ibbi.gov.in/webfront/regulation_comment.php. The procedure for submitting comments is outlined in the Press Release No. IBBI/PR/2023/05 dated May 4, 2023, on the IBBI website.
The IBBI is known for its transparent and consultative approach to policymaking. This includes a dual-review mechanism for its regulations:
- Annual Review: The IBBI invites public comments and reviews its regulations annually. This process allows stakeholders to provide feedback on how the regulations have been implemented and identify areas for improvement.
- Triennial Review: Regulations are reviewed every three years based on specific criteria, including their intended objectives and the outcomes they have achieved. The last triennial review process was completed in 2021.
The current call for public input is part of the annual review process, and it seeks to gather insights and suggestions from a wide array of stakeholders. These suggestions will be carefully examined, and where applicable, integrated into the regulatory framework to enhance its effectiveness and efficiency.
The importance of public and stakeholder participation in regulatory reviews cannot be overstated. It ensures that regulations are pragmatic, well-informed, and responsive to the needs of businesses and the broader economy. By fostering collaboration and feedback, the IBBI is taking essential steps to simplify, streamline, and reduce the cost of compliance, ultimately benefiting the business community and the Indian economy as a whole.
The last date for the submission of comments and suggestions is December 31, 2023, providing individuals and entities ample time to contribute to this important process. Section 240 of the Insolvency and Bankruptcy Code, 2016 (Code), empowers the IBBI to make regulations, and the IBBI has established regulations outlining the consultation, framing, and review processes to ensure transparency and accountability in its regulatory framework.
