The Insolvency and Bankruptcy Board of India (IBBI) has suggested regulatory modifications to ensure a timely grievance redressal and enforcement mechanism, including shortening disciplinary processes durations.The IBBI, a crucial institution in executing the Insolvency and Bankruptcy Code (IBC), has proposed a number of changes to the grievance redressal and enforcement mechanisms for service providers registered with it.
The IBBI said in a discussion paper that a time-bound enforcement mechanism would improve the institution's transparency and stakeholder confidence. It was also mentioned that a delay in the enforcement mechanism could lead to litigation, which would incur additional costs for both the service provider and the board.
"As a result, an effective enforcement mechanism will decrease the aforementioned lawsuit." Furthermore, an efficient and time-bound enforcement mechanism will boost stakeholders' faith in the process, potentially leading to higher stakeholder participation," according to the IBBI.
The IBBI has stated that it will notify members of the Committee of Creditors (CoC) and the Adjudicating Authority about orders issued by the board's Disciplinary Committee (DC) against insolvency professionals, among other things (IPs).
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