Centre willing for changes in Insolvency and Bankruptcy Code

August 3, 2018

New Delhi: Union Ministry for Corporate Affairs Secretary Injeti Srinivas on Friday said the government is ready to further amend the Insolvency and Bankruptcy Code (IBC), a game changer in creating a market for stressed assets.

“It is a game changer. The future contours of the Indian economy will be positively influenced by this. The government is more than willing to take any good suggestion, evaluate it and bring further changes in the IBC, if required,” Srinivas said at an event here.

Srinivas, speaking at the Insolvency and Bankruptcy Reforms Conference, said the law has achieved much in less than two years since it was enacted. Earlier, the rules were focused on recovery instead of resolution, thereby losing much economic value in the stressed assets.

The code has already undergone four amendments. It clearly shows that the government means business and was working towards redefining the rules of the game, Srinivas said.

India has made a significant progress in terms of the four parameters of the World Bank’s insolvency resolution framework — time taken for resolution, insolvency cost, outcome and recovery.

“On all these parameters, we have within two years jumped more than 30 ranks. On the insolvency resolution framework, we were ranked 136; now we have come to 103,”
the officer said.

He said India will rise further in the World Bank rankings in the next year’s evaluation when the IBC amendments were operationalised.

Srinivas said it was not true that the Insolvency and Bankruptcy Board of India (IBBI), which executes the IBC, prevents the promoter(s) from bidding for the stressed assets.

“This is a myth. Section 29 (A) will show you… we prevent an undesirable resolution applicant, including a promoter. We have not prevented the promoter alone,” he said.

The officer denied that there was no competition in bidding for stressed assets.

“People are bidding and re-bidding. In fact, in the steel sector, land itself is a big attraction and therefore there is a lot of competition.”

As per the last amendment, IBBI as a regulator has been given a specific development role that it should build the market for stressed assets.

The two-day conference, which began on Friday to deliberate on the accumulated empirical evidence of last two years for possible policy inputs, was organised by IBBI and the Indira Gandhi Institute of Development Research.
(IANS)

Sisodia changed 12 cellphones, ED alleges in charge sheet

New Delhi ; The Enforcement Directorate (ED), which had earlier claimed that the accused involved in Delhi's excise policy case changed 140 cellphones in a bid to destroy digital evidence, said...

ED chargesheets Sameer Mahendru in Delhi excise policy case

New Delhi: A day after the Central Bureau of Investigation (CBI) filed its first charge sheet in the Delhi excise policy case, the Enforcement Directorate (ED) on Saturday filed its first...

Voters’ data row: Congress welcomes EC decision, demands FIR against Bommai

Bengaluru: Congress Karnataka in-charge Randeep Singh Surjewala on Saturday welcomed the swift action by the Election Commission in ordering review of deletions and additions in voters' list and suspension of two...

UP anti-conversion law enables cops to push BJP’s love jihad policy

Lucknow: It was in mid-2020 that nearly half a dozen cases related to inter-faith relationships gone wrong, were reported in Uttar Pradesh. Alarmed at the trend, UP chief minister Yogi Adityanath...

Mehrauli murder: Delhi court sends Aaftab to 14-day judicial custody

New Delhi: A Delhi court on Saturday sent Aaftab Amin Poonawalla, accused of killing his live-in partner Shraddha Walkar, to 14 days judicial custody. He was produced before the Saket court...

It’s Baba Ramdev again: ‘Women look good even if they don’t wear anything’

Yoga guru Baba Ramdev on Saturday made an “ugly” comment on women in Maharashtra when he said women look good in sarees, in salwar suits and eve if they don’t...

India successfully orbits Indo-French collaborative EOS 6/OCEANSAT, 8 other satellites

  Sriharikota (Andhra Pradesh): India on Saturday successfully placed into orbit the Indo-French ocean observation satellite EOS 06 and eight other nano satellites with its rocket Polar Satellite Launch Vehicle...

SC’s ruling for remuneration to imams a ‘violation of Constitution’, says CIC

'Tax payers money will not be used to favour any particular religion' Following Babri Masjid demolition, Narasimha Rao announced several sops to Muslims, including salaries to the imams Hindu right...

Congress leader Asif Mohammad Khan, father of MCD candidate from Shaheen Bagh, held for ‘assaulting’ cops

Former Congress MLA Asif Mohammad Khan, whose daughter is contesting from Shaheen Bagh in the upcoming municipal corporation polls, has been arrested by Delhi Police for allegedly assaulting and misbehaving...

Can universal vaccine counter future pandemic?

The research opens up a world of new possibilities with mRNA vaccine technology 'Strong antibody immune responses were shown against all 20 different flu strains' 'There will be far less...

Insolvency proceedings begin in Ansal Properties and Infrastructure

New Delhi: The National Company Law Tribunal (NCLT) has ordered the commencement of a corporate insolvency resolution process of Ansal Properties and Infrastructure. The creditors of Ansal Properties have been...

Over 160 nations agree to regulate trade in 500 new wild species

Panama City: Representatives of more than 160 governments, parties to the Convention on International trade in Endangered Species of Wild fauna and flora (CITES) have reaffirmed their commitment to address...

Read Previous

Film director Vijay Gutte held for Rs 34-crore GST fraud

Read Next

People aghast as UIDAI helpline number mysteriously appears in phonebooks

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com