MCA invites public comments on seven crucial rules under IBC
The Corporate Affairs Ministry (MCA) has invited public comments on seven specific rules prescribed by it under the Insolvency and Bankruptcy Code (IBC), which was enacted in 2016. The seven rules which are now being reviewed include those related to insolvency application to NCLT; insolvency and liquidation of financial service providers (FSPs); insolvency resolution process and bankruptcy process of personal guarantors; pre-packaged insolvency process and form of annual report.
The latest MCA move comes in the wake of new policy released by the Ministry in January this year for pre-legislative consultation and comprehensive review of existing rules and regulations prescribed under legislations administered by it.
Finance and Corporate Affairs Minister Nirmala Sitharaman had said in her Budget speech, “To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For this they will consider suggestions from public and regulated entities. Time limits to decide the applications under various regulations will also be laid down.”
Stakeholders have been given thirty days to send in their comments on the proposed review of these seven Rules. Comments have been invited through the e-consultation platform on the MCA website.
