Insolvency resolution: The IBC story so far and the way forward
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Last Updated: Jan 22, 2021, 11:56 AM IST
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Solution: SEBI, IRDAI and RBI need to enable legislations and/or guidelines jointly to avoid blind spots.
Insolvency and Bankruptcy Code 2016, (IBC) in a span of four years, has turned out to be the proverbial giant in the annals of Indian corporate law. The legislation catapulted India in World Bank’s Doing Business rankings from a lowly 142 in 2014 to 63 in 2019. Though not a recovery mechanism, IBC resulted in mean recoveries of 44% for financial creditors in comparison to 24% from Debt Recovery Tribunals (DRT), SARFAESI Act and Lok Adalats combined, for financial years 2018-2020.
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