The Insolvency & Bankruptcy Board’s move to make the committee of creditors (CoC) more accountable for its actions appears to have run into rough weather.
The government is apprehensive about handing the oversight of CoC to the Insolvency & Bankruptcy Board (IBBI), as proposed in the code of conduct, and this could delay its implementation, people aware of the matter told ET.
The regulator had intended to take up the proposal in the upcoming board meeting slated for December 24, but it is unlikely to be part of the Board’s agenda as the corporate affairs ministry is yet to take a call, said one of the persons cited earlier.
The ministry, instead, favours an inter-regulatory and coordination-based mechanism.
“IBBI can issue guidelines but cannot regulate the CoC. There have been discussions to implement a mechanism that allows different regulators to coordinate and oversee the CoC instead of IBBI alone,” said a senior official who was privy to the discussions.
There have been talks of setting up a coordination mechanism between the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) as CoC involves banks and market intermediaries.