RAS question
Insolvency and Bankruptcy Board of India (IBBI) was established under:
Correct answer: (D) IBC, 2016.
The Insolvency and Bankruptcy Board of India was established under the Insolvency and Bankruptcy Code, 2016.
Explanation
IBBI was established on 1 October 2016 under Section 188 of the Insolvency and Bankruptcy Code, 2016. The official IBBI About page places IBBI in the Code's implementation ecosystem, not under a banking recovery law, the RBI statute, or the Companies Act. Its role also belongs in the insolvency framework: IBBI regulates insolvency professionals, insolvency professional agencies and information utilities, and oversees insolvency and bankruptcy processes under the Code. Therefore, IBC, 2016 is the only statute that correctly establishes IBBI.
Why the other options are wrong
- (A) SARFAESI Act, 2002 is a separate secured-creditor recovery law, while IBBI is established under the Insolvency and Bankruptcy Code, 2016.
- (B) RBI Act, 1934 governs the Reserve Bank framework, but IBBI is not established under that Act; it is tied to implementation of the Insolvency and Bankruptcy Code, 2016.
- (C) Companies Act, 2013 is not the establishing law for IBBI, because IBBI was established under the Insolvency and Bankruptcy Code, 2016.
Concept
The statutory architecture of India's insolvency regime links each institution to its creating law. RAS often asks such regulator-law pairings because they connect economy, governance and current institutional reforms.