CHAPTER I THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIACentral

Section 195 of The Insolvency and Bankruptcy Code, 2016. in hindi

Until the Board is established, the Central Government may by notification, designate any financial sector regulator to exercise the powers and functions of the Board under this Code.

Summary

Allows the Central Government to designate a temporary regulator before the actual Board is officially established.
Restricts the temporary designation choice to existing financial sector regulators, which are bodies that control financial markets or services.
Requires the Central Government to issue a formal notification, meaning a public announcement in the official gazette, to designate this temporary authority.
Grants the designated regulator all the powers and functions of the Board under the Code during the interim period.

Practical examples

1In late 2016, before the Insolvency and Bankruptcy Board of India was set up, the Central Government issued an official gazette notification to designate the Reserve Bank of India, which is the banking regulator, to perform the Board's functions. Under Section 195 of the Insolvency and Bankruptcy Code, 2016, the Reserve Bank of India could temporarily register agencies and oversee initial procedures.

2If a new division for individual bankruptcy needs urgent supervision in a remote region before the local Board office is established, the Central Government can notify the Securities and Exchange Board of India, which is the securities regulator, to step in. Under Section 195 of the Insolvency and Bankruptcy Code, 2016, this temporary regulator holds full statutory authority.

FAQ

1. Who has the power to designate a temporary regulator under Section 195 of the Insolvency and Bankruptcy Code, 2016?

Under Section 195 of the Insolvency and Bankruptcy Code, 2016, the Central Government has the power to designate a temporary financial sector regulator to exercise the powers of the Board.

2. When can a financial sector regulator, which is a financial supervisory body, be designated to act as the Board under the Insolvency and Bankruptcy Code, 2016?

Under Section 195 of the Insolvency and Bankruptcy Code, 2016, this designation can only happen during the interim period until the Board is established.

3. How does the Central Government notify the public about a designated regulator under Section 195 of the Insolvency and Bankruptcy Code, 2016?

Under Section 195 of the Insolvency and Bankruptcy Code, 2016, the Central Government must designate the financial sector regulator by issuing a notification, which is an official public announcement, in the Gazette.

Test yourself

Q1.Under Section 195 of the Insolvency and Bankruptcy Code, 2016, who can the Central Government designate to perform the Board's duties before the Board is established?

Q2.Under Section 195 of the Insolvency and Bankruptcy Code, 2016, what is the mandatory legal method for the Central Government to designate a financial sector regulator?

Q3.Under Section 195 of the Insolvency and Bankruptcy Code, 2016, what powers does a designated financial sector regulator hold?

Q4.Under Section 195 of the Insolvency and Bankruptcy Code, 2016, when does the authority of a designated temporary regulator naturally expire?

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