IBBI Sets Up Committee Under Former SEBI Chairman To Aid Debt Recovery From Stressed Corporate CollectivesFormer SEBI Chairman U K Sinha (Picture Credits-Facebook)

The insolvency regulator has set up a working group under former Securities and Exchange Board of India (Sebi) Chairman UK Sinha to recommend a complete regulatory framework to facilitate insolvency resolution and liquidation of debtors in a corporate group within the Insolvency and Bankruptcy Code (IBC).

At present, the IBC provides for the resolution or liquidation of only individually- stressed companies. So a framework within the IBC is sought to be created for the resolution/liquidation of an entire stressed corporate group having several entities in multiple NCLT jurisdictions, sources said.

The working group, with seven members and four invitees, will submit its report in two months, the Insolvency and Bankruptcy Board of India (IBBI) said in a statement.

The two-year-old IBC has been the best mechanism to recover debt thus far. An ongoing RBI report proposed that the average recovery by banks, due to IBC recording, was as much as 41.3 per cent in FY18, against a merely 12.4 per cent through different mechanisms, for example, the SARFAESI Act, Debt Recovery Tribunals and Lok Adalats.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement