Continuing efforts to ensure a more conducive regulatory framework for stakeholders, IBBI has sought comments from the public on existing regulations under the insolvency law.

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Insolvency and Bankruptcy Board of India (IBBI) is a key entity in implementing the Insolvency and Bankruptcy Code (IBC).

Noting that stakeholders could play a more active role in making regulations, IBBI said that they may contemplate, at leisure, the important issues in the extant regulatory framework that hinder transactions and offer alternate solutions to address them.

"This is akin to crowdsourcing of ideas. This would enable every idea to reach the regulator. Consequently, the universe of ideas available with the regulator would be much larger and the possibility of a more conducive regulatory framework much higher," IBBI said in a release.

According to the regulator, despite the best of efforts and intentions, a regulator may not always have the understanding of the ground realities, as much and as early as the stakeholders and the regulated may have, particularly in a dynamic environment.

Further, it noted that comments received between April 13 and December 31, 2020 would be processed together and following the due process, regulations would be modified to the extent considered necessary.

"It will be the endeavour of the IBBI to notify modified regulations by March 31, 2021 and bring them into force on April 1, 2021," the release issued on Monday said.

Public consultation enables collective choice and hence plays an important role in the evolution of the regulatory framework, it added.