Govt to table amendments to IBC during budget session

India’s corporate rescue regime the five year old Insolvency and Bankruptcy code (IBC), is set for another makeover early next year. The ministry of corporate affairs and bankruptcy rule maker the Insolvency and Bankruptcy Board of India (IBBI) are preparing amendments to IBC, which will be placed before Parliament in the coming budget session.

The amendments being drafted are aimed at tackling challenges in timely rescue of distressed companies, said a person with knowledge of the matter. They seek to address shortcomings highlighted by a parliament panel in August such as low recovery rate in many cases and delays in resolution proceedings.

IBBI has made presentations to the ministry regarding the scope of the amendments and the contours of the legislative changes are needed are being studied. The amendment is expected to be a major milestone in the evolution of the bankruptcy code which has undergone several changes in step with changing economic realities since its adoption in 2016.

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