Ibbi guidelines for CoC need monitoring mechanism, say IBC experts

Earlier this month, the insolvency regulator introduced guidelines for CoC that steer the insolvency resolution process to stem the value erosion that occurs due to delays and bring more transparency

The recently announced guidelines issued by the Insolvency and Bankruptcy Board of India (IBBI) for the Committee of Creditors (CoC) are a step in the right direction but IBC experts believe it would not be effective unless there is a monitoring mechanism in place. 

“There are no obligations for the CoC (in these guidelines). They have not been issued under any law and are self-regulatory in nature. When the idea was conceptualised for the first time, IBBI was at least trying to get the Reserve Bank of India (RBI) on board,” a senior IBC expert said. 

Earlier