New Delhi, March 29, 2017
Hopeful that insolvency code implementation will help improve India’s ease of doing business ranking
The Centre is confident that the newly established institutional framework for Insolvency and Bankruptcy code implementation would help improve the country’s ranking in the World Bank’s ease of doing business index in the coming days.
“Yes it (bankruptcy code implementation) is going to help us improve our ranking on ease of doing business”, Arjun Ram Meghwal, Minister of State for Finance, told Business Line here.
As a regulator for overseeing insolvency proceedings and insolvency related entities, the Insolvency and Bankruptcy Board of India (IBBI) was established on October 1 last year.
The whole objective of Insolvency and Bankruptcy code is to provide a market determined time bound mechanism for orderly resolution of insolvency wherever possible and orderly and easy exit wherever required.
Earlier, after inaugurating a new facility where the IBBI will be housed in the capital, Meghwal said that insolvency bankruptcy code implementation has become the “highest priority” for the Government.
This (insolvency and bankruptcy code) is one key intervention of the Government that will take India into a leadership role among the comity of nations in the 21st century, Meghwal said.
As for IBBI, Meghwal advised that the regulator should “not be intrusive” but guide the market in the right direction rather than look to control the players.
Meanwhile, IBBI Chairman M.S. Sahoo said that IBBI will in the next few days notify regulations for information utilities, which will make information available instantaneously. “Neither the tribunals nor the stakeholders will have to run around to gather information to establish the default”, Sahoo told BusinessLine.
Information utilities are expected to collect, collate, authenticate and disseminate financial information of debtors in centralised electronic databases. Creditors would be required to provide financial information of debtors to multiple utilities on an ongoing basis.
IBBI will also in next few days notify regulations around voluntary liquidation. “We expect very transactions. But we are keeping the system ready”, Sahoo said.
[The Hindu Business Line]