For issuing regulations under the insolvency law, the Insolvency and Bankruptcy Board of India (IBBI) has notified the mechanism to govern the process of making regulations and consulting the public. A set of procedures would be followed for making or amending regulations under the Insolvency and Bankruptcy Code (IBC).
Under the mechanism, a draft of regulations would be put out for public consultations as well as a statement of the problem that the proposed regulation seeks to address. Among others, there would be an economic analysis of the proposed regulations and a statement carrying relevant norms advocated by international standard setting agencies and the international best practices.
The IBBI shall allow at least twenty-one days for public to submit their comments. If the governing board of the IBBI decides to approve regulations in a form substantially different from the proposed regulations, it shall repeat the process under the issuing regulations. In case, there is an urgent need for issuing or amending regulations, then the consultation process could be done away with.