The Insolvency and Bankruptcy Board of India (IBBI) has invited suggestions from public and regulated entities on measures needed to simplify, ease and reduce cost of compliance of its regulations.

This move is in line with this year’s budget announcement where Finance and Corporate Affairs Minister Nirmala Sitharaman had said that financial regulators would be requested to carry out comprehensive review of existing regulations so as to simplify, ease and reduce cost of compliance.

Currently, IBBI follows a dual-review mechanism of its regulations —annual review of regulations after inviting public comments and review of regulations every three years based on set criteria, including intended objectives and outcomes achieved.

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IBBI had in 2021 completed the three year review process. In May this year, the insolvency regulator had sought public comments on regulations for annual review for this year. 

The last date for submission of comments and suggestions for the annual review is December 31, 2023. The comments are being received and examined, per IBBI.

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On the latest IBBI move, Hari Hara Mishra, CEO, ARC Association, said that the budgetary announcement of review of regulations in consultation with stakeholders should be adhered to by all financial sector regulators.

“IBBI has been the pioneer in this regard in putting up a consultative framework on an ongoing basis,  to align regulations with changing business dynamics,” he added.