Draft Policy for Pre-Legislative consultation and
comprehensive review of existing Rules and
Regulations
3. Need for public consultation in rule/regulation making exercise has
been felt for bringing in greater transparency and greater involvement of
the stakeholders. The Legislative Department vide their DO Letter DO
11(35)/20-13-L.I dated 5
th February, 2014 has also laid emphasis on the
process of pre-legislative consultation for principal legislations as well as
for subordinate legislation.
4. In this context, paragraphs 99 and 100 of Budget Speech (2023-24) of
Hon’ble Finance and Corporate Affairs Minister read as under:-
Financial Sector Regulations
99. To meet the needs of Amrit Kaal and to facilitate optimum
regulation in the financial sector, public consultation, as
necessary and feasible, will be brought to the process of
regulation-making and issuing subsidiary directions.
100. To simplify, ease and reduce cost of compliance, financial
sector regulators will be requested to carry out a comprehensive
review of existing regulations. For this, they will consider
suggestions from public and regulated entities. Time limits to
decide the applications under various regulations will also be laid
down.
5. The issue has also been discussed in the Financial Stability and
Development Council (FSDC) meeting. Para 13 of RoD of 27th FSDC
Meeting (08.05.2023) is as shown below:
“ Para 13: The Chairperson (IBBI) outlined the Board’s practice of
inviting extensive discussions prior to the issuance of any
regulation, highlighting that there is a specific regulation on
regulation-making. Following the recent budget announcements,
resolution professionals and other stakeholders have been
requested to provide comments on all existing regulations. IBBI is
willing to revise any cumbersome or unfriendly regulation based on
the feedback received in the next three months. To reduce
compliance costs, the existing eight forms have been consolidated
into one form, and the process of digitisation is to follow suit under
the IBC 21 initiative, with the launch of a new portal expected by