Govt issues another set of draft norms under bankruptcy code

The Dollar Business Bureau

The government on Tuesday notified another set of draft regulations to further help companies undertake liquidation and insolvency as part of the Insolvency and Bankruptcy Code, 2016.

These regulations have been modified for the implementation of the bankruptcy code and are envisaged to improve the ease of doing business in the country.

Last week, the government announced another set of draft regulations for registration of professionals and agencies under the insolvency code.

The new draft regulation underscores liquidation of insolvent corporate, insolvency resolution process for corporate and application to judicial authority.

The new set of drafts has been put up for stakeholders’ feedback, following which the corporate affairs ministry will finalise the rule.

The ministry had constituted a working group of experts and practitioners for the implementation of the Insolvency and Bankruptcy Code. The working group has so far notified six draft regulations under the code.

In May this year, the government cleared the Insolvency and Bankruptcy Code with an aim to facilitate easy and time-bound settlement of insolvency, ensure faster turnaround of businesses and establish a database of serial defaulters.

The bankruptcy law is proposed to create a complementary ecosystem for bankruptcy regulator, information utilities and insolvency professionals.

While the implementation of this code remains still pending, the government has already set up the Insolvency and Bankruptcy Board of India (IBBI).

Last month, M S Sahoo was appointed as the Chairman, who on Friday held his first meeting. It was addressed by Minister of State (MoS) for Finance Arjun Ram Meghwal.