Another IBC fix?

Regulator's proposal for code of conduct for creditors deserves scrutiny

The Insolvency and Bankruptcy Board of India (IBBI), which is the regulator established under the 2016 insolvency code, has issued a discussion paper on the corporate insolvency resolution process and invited comment on its suggestions. The IBBI’s concern is that, while it regulates other segments of the insolvency and bankruptcy chain and ecosystem, the committee of creditors (CoC) — the group of financial creditors of a company going through the IBC (Insolvency and Bankruptcy Code) process — “functions in an unregulated environment”. The discussion paper argues that appellate authorities have questioned the “capacity and conduct” of the CoC, and that