New Delhi: The government has come out with draft norms for registration of insolvency professionals and agencies under the Insolvency and Bankruptcy Code.
While the Code is in the process of being implemented, the government has already set up the Insolvency and Bankruptcy Board of India (IBBI), chaired by M S Sahoo.
The Corporate Affairs Ministry has issued the draft regulations, which would be finalised after taking into consideration views of stakeholders.
The draft regulations pertain to registration of insolvency professionals, agencies and model bye-laws. It has been drafted by a working group of experts set up by the ministry.
The panel was constituted as part of the process for implementing the Code, the Ministry said in a notice.
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.
Under the new law, employees, creditors and shareholders would have powers to initiate winding up process at the first sign of financial stress such as serious default in repayment of bank loan.
The draft norms have been put up for public comments till October 28.
IBBI would have 10 members. Apart from the chairman, four nominees have been appointed by the government while the process is on for appointing three whole time members. There would also be two members from outside.