The rules and regulations for Insolvency and Bankruptcy Board Code are likely to be finalised by November end as the government moves closer to make the new institution fully functional. “Hopefully, the final rules should be ready by next month,” sources said. The board will discuss the public comments that being sought currently and finalise draft rules to be notified under the code during the first half of the next month, they said.
The government has already constituted the IBBI while the draft norms will be finalised after taking into consideration views of the stakeholders. Notified by the government in May, the Code seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner. Earlier this month, draft regulations related to liquidation of insolvent corporate persons, insolvency resolution process for corporate persons and application to judicial authority. The ministry had issued draft regulations pertaining to registration of insolvency professionals, agencies and model bye-laws. A working group of experts, set up by the ministry, has prepared these regulations. Views of stakeholders have been sought till October 31 on these draft norms. Meanwhile, IBBI, chaired by M S Sahoo, held its first meeting last Friday and it was addressed by Minister of State for Finance Arjun Ram Meghwal. The board will have 10 members. Apart from the chairman, currently there are four government-nominated members and the rest are expected to be appointed in coming months.