KOLKATA: The Indian Board of Insolvency and Bankruptcy (IBBI) announced on Wednesday that it will issue further regulations after receiving extensive public comments in the form of recently released discussion papers.
The new set of regulations will seek to further streamline the Business Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). It will also aim to reduce delays and improve resolve value, said IBBI President Ravi Mital.
“We will publish the rules by the end of this month,” Mital said during a CII virtual meeting on IBC.
Responding to issues raised in the discussion papers and highlighted by ICN Co-Chair (ER), Sub-Committee on Economic Affairs, Corporate Finance and Taxation, Bijay Murmuria, he said the new standards will attempt to address many concerns of banks.
The new regulations will address changes in the timing of activities under the CIRP, the guiding factors for the creditors’ committee (CoC) to decide on early liquidation and the remuneration of resolution professionals, Mital said.
Rohit Kapoor, Member of NCLT Kolkata (Judiciary), said, “We are on the right track. The start-up problems will be there because there will be solutions, and IBBI is already taking proactive steps.”