Falling out of favour: Consultancies and law firms suggest IBC revamp

Investors feel IBC's promised twin benefits - a time-bound process and assurance of a clean slate - don't necessarily come through

Topics
Insolvency and Bankruptcy Code

Ruchika Chitravanshi  |  New Delhi 

For all its promise of redeeming stressed companies, the Insolvency and Bankruptcy Code (IBC) is falling out of favour with the industry, which has pointed out several roadblocks to the government. These range from time-consuming litigation to the threat of coercive action post the resolution process.

In a series of representations to the corporate affairs ministry, leading consultancies and law firms have suggested a revamp of the IBC post the suspension of initiation of corporate insolvency resolution process. Dogging delays Investors feel IBC’s promised twin benefits ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 08 2020. 06:10 IST
RECOMMENDED FOR YOU
.