Bankruptcy, audit regulators tighten overview as bills undergo review
NEW DELHI : Bankruptcy and audit regulators are tightening their supervision of the distressed asset and audit markets as two bills proposing amendments to the Insolvency and Bankruptcy Code and the Companies Act make their way through ministries. The Insolvency and Bankruptcy Board of India (IBBI) and audit regulator National Financial Reporting Authority (NFRA) are moving ahead, issuing clarifications, while the two bills come under rigorous inter-ministerial discussions, according to a person informed about the development.
Both watchdogs are focusing on areas that require greater compliance, giving space to the government to hold consultations on those provisions of the two bills where multiple sectors and stakeholders are involved. The ministry of corporate affairs is holding consultations on the two bills so that they are ready in time for the winter session of Parliament with the cabinet’s approval, the person said.
A special regime for real estate sector and a regulatory regime for group insolvency are mooted as part of discussions on the IBC amendments while the Companies Act amendments include proposals for changes to the statutory audit regime. “Project-wise insolvency resolution for real estate sector was one of the ideas proposed in an expert committee report.
But a final call is yet to be taken," said a second person, who also spoke on condition of anonymity. Ministries have different views on the proposals and they may want to get their own new ideas incorporated, this person said.
Onboarding all views and cyrstallizing the final form of the bills cannot be rushed, this person said, adding the pace of change should be such that the system is able to adapt to it. While the Companies Act amendments explore
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