IBBI likely to issue more regulations by August-end to streamline CIRP

The new set of regulations will aim at further streamlining the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, says IBBI chairperson Ravi Mital

The Insolvency & Bankruptcy Board of India (IBBI) on Wednesday said it will issue some more regulations after getting elaborate feedback from the public in the form of discussion papers floated recently.

The new set of regulations will aim at further streamlining the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). It will also target to reduce delay and improve the resolution value, IBBI chairperson Ravi Mital said.

"We will issue the regulations by the end of this month," Mital said while addressing a CII virtual meeting on IBC.

Responding to issues raised in the discussion papers and pointed out by CII Co-Chairman (ER), economic affairs, corporate finance & Taxation sub-committee, Bijay Murmuria, he said that the new norms will attempt to address many concerns of banks.

The new regulations will be on changes in timelines for activities under CIRP, guiding factors for the Committee of Creditors (CoC ) to decide on early liquidation, and remuneration of Resolution Professionals, Mital said.

NCLT Kolkata Member (Judicial) Rohit Kapoor said, "We are on the right track. Teething problems will be there as there will be solutions, and IBBI is already taking proactive measures."