New Delhi: After dealing firmly with large corporate loan defaulters, the government has started drawing up a simpler version of the insolvency and bankruptcy code for partnership and proprietorship firms, the legal form that most small and medium enterprises (SMEs) take. The insolvency and bankruptcy code that is currently in place deals only with companies, not other forms of organized economic activity. The Insolvency and Bankruptcy Board of India (IBBI) has started working on a blueprint for the SME bankruptcy code, the framework of which is expected to be drawn up by the end of this month, a person privy to the development said on condition of anonymity. The proposed simpler code will also cover personal bankruptcy of individuals with business interests. The issues they face are less concerning business restructuring and are more about operational challenges and access to credit.

Source: Mint July 16, 2017 19:07 UTC