Last week, in order to further strengthen the framework, the Insolvency and Bankruptcy Board of India amended the corporate insolvency resolution process. The revision in regulation now makes “it incumbent upon the resolution professional to ensure that the resolution plan presented to the committee of creditors contains relevant details to assess the credibility of the resolution applicants”. While the changes are likely to make the insolvency resolution process more robust and transparent, they would increase the pressure on the resolution professional as the entire process is time bound. Overall, the changes will make the insolvency resolution process more robust and make things difficult for unscrupulous promoters. Will improvement in the insolvency resolution framework lead to better allocation of capital?

Source: Mint November 14, 2017 19:18 UTC