A code for the committee of creditors

Several proceedings have witnessed a variety of contraventions of provisions of the insolvency law by market players

The Insolvency and Bankruptcy Board of India (IBBI) issued a discussion paper in August 2021 proposing a code of conduct (code) for the committee of creditors (CoC) to ensure transparency in its functioning. This followed the observation of the Parliamentary Standing Committee of Finance in its 32nd Report in early August, “…there is an urgent need to have a professional code of conduct for the committee of creditors which will define and circumscribe their decisions”. There has been intense debate since then on who should issue and enforce the code. 

A sound regulatory design avoids any kind of regulatory overlap and