Kolkata: Insolvency and Bankruptcy Board of India (IBBI) Chairperson M.S. Sahoo on Monday said that some of the major issues confronting the Insolvency and Bankruptcy Code (IBC) could be resolved in the next two to three years and the law would become more "seamless" in implementation.
With an objective to ease out the various issues, the Central government and IBBI has been undertaking a series of consultations and discussions and also invited comments and suggestions from all stakeholders, he said.
Comments on the regulations are expected by December end and the board plans to notify modified regulations by March 31, 2020, he added.
Sahoo also said that the introduction of changes is a "continuous process" with several amendments brought in over the last couple of years to strengthen the insolvency and bankruptcy process.
However, the nature of changes will depend on the kind of comments received, he said.
"It is like crowd sourcing of ideas. All comments, which are received by December 2019, will be considered together. The regulations are expected by March end, so that people know new law is coming by April," said Sahoo on the sidelines of an interactive session organised by Merchant Chamber of Commerce and Industry here.
According to him, the introduction of a new regulation like IBC was expected to face some challenges.
"It has happened in the past with major laws. But you have to see how soon the issues are getting resolved even at the Supreme Court....major issues might be sorted out over the next 2-3 years," he said.
Issues like efficiency of insolvency resolution and liquidation framework for corporate, individual and partnership firms would come up for a relook after the government reconstituted Insolvency Law Committee as a standing committee under chairmanship of secretary, Ministry of Corporate Affairs. The ministry has invited comments up to May 7.
Sahoo also said that the availability of insolvency professionals (IPs) is expected to go up through the Graduate Insolvency Programme (GIP) even as there is no shortage.
"The GIP is not to address shortage. It is a different routes to become an insolvency professional. One route says that you have to wait for 10 years to come on. This route says that instead of 10 years, you can do a 2 year programme and can become an insolvency professional. There are young people with their abilities and we don't want to miss out," he said.