The Insolvency and Bankruptcy Code (IBC) is one of the landmark reforms in India. It has aggregated many laws and regulations on bankruptcy in India and has helped in significant improvement in India’s position in the World Bank’s Ease of Doing Business Index. More importantly, the enactment of this law has brought about reformative transformation in the credit behaviour of borrowers by underscoring that honouring commitments to pay is the most crucial part of conducting business.
The magnitude of usage of IBC clearly shows that it has become the preferred route to resolution for the creditors. The implementation process under the IBC has had a strong and efficient start with the Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India (IBBI) having swiftly responded to the needs of new ecosystem. All fora ranging from the NCLT to the Hon'ble Supreme Court of India have upheld the objectives of IBC : resolution, maximisation of value of assets for all creditors and promoting entrepreneurship, availability of credit and balancing the interests.
Strengthening of the new insolvency regime is an on-going process, which can be facilitated through consultation and discussions. Against this backdrop, FICCI has constituted a dedicated Committee on Stressed Assets.
- Analyse issues faced by stakeholders in resolution of debt-ridden corporates and framework required to put these companies back on track swiftly
- Recommend policy/regulatory changes and work with the Government and Regulator (IBBI) for clear, consistent and transparent laws and regulations
- Dialogue with Government and its agencies for representing industry views to promote ease of doing business in India
- Organise Conferences and Roundtables in India and abroad to disseminate investment opportunities in stressed assets, drawing interest of foreign investors in IBC
- Constitute task forces to take up some important issues separately