Strengthening IBC

Proposed changes will reduce delays

The implementation of the Insolvency and Bankruptcy Code is one of the biggest reforms in the financial sector in recent decades. The objective of the Code is to resolve insolvencies in a time-bound manner and maximise value for all stakeholders. Its implementation has undoubtedly improved the way in which insolvency issues are addressed in India, though the overall results are still below expectation. However, it is encouraging to see that the government is consistently working to strengthen the Code by addressing the emerging gaps. Last week, it proposed another set of changes that would help address insolvency issues more effectively