NS bankruptcy And bankruptcy The board’s move to make the Committee of Creditors (CoC) more accountable for its actions appears to have run in bad weather. The government is apprehensive about handing over surveillance COC Insolvency and Bankruptcy Board (IBBI), as proposed in the code of conduct, and this may delay its implementation, people familiar with the matter told ET.

The regulator intended to take up the proposal in the upcoming board meeting to be held on December 24, but it is unlikely to be part of the board’s agenda as the corporate affairs ministry is yet to take a decision, a person previously mentioned. has done.

The ministry, instead, favors an inter-regulatory and coordination-based mechanism.

A senior official privy to the discussions said, “IBBI can issue guidelines but cannot regulate the CoC. Discussions have taken place to implement a mechanism that allows various regulators to coordinate and monitor the CoC instead of IBBI alone. allows.”

There is talk of setting up a coordination mechanism between the Reserve Bank. India (RBI) and Securities and Exchange Board of India (SEBI) include banks and market intermediaries as CoCs.

The bankruptcy regulator wanted to make the CoC more accountable for its actions, which would make the liquidation process fairer and more transparent. It had prepared a draft in August seeking suggestions from all stakeholders and regulators.

The need for a code of conduct for CoCs was felt in the wake of the recent drastic reduction in insolvency resolution cases by banks and financial institutions. There have been strong comments on the functioning of the CoC by the National Company Law Tribunal (NCLT) and even the Parliamentary Standing Committee on Finance.