Government has come out with three more set of draft regulations under the Insolvency and Bankruptcy Code 2016, including liquidation of insolvent corporate persons, insolvency resolution process for corporate persons and application to judicial authority.
The government has till now notified six draft regulations under the code.The new set of draft rules for insolvency resolution process for corporate persons specify the duties and power of the interim resolution professional. The draft rules for liquidation of insolvent corporate persons require an insolvency professional appointed as a liquidator to conduct the process of liquidation involving preparation of preliminary and progress reports during the procedure. The final report shall form part of the application for the dissolution to the Adjudicating Authority.
As part of the process for implementing the Insolvency and Bankruptcy Code, the government has already set up the Insolvency and Bankruptcy Board of India (IBBI). Draft norms have been put up for stakeholder feedback, the last date for which is October 31,2016 and the rules will be finalized after taking into consideration the views of the stakeholders. Recently, the corporate affairs ministry 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.