The Centre is confident that the newly established institutional framework to implement the Insolvency and Bankruptcy Code (IBC) will help improve the country’s ranking in the World Bank’s ease of doing business index.

“Yes, it is going to help us improve our ranking in ease of doing business,” Arjun Ram Meghwal, Minister of State for Finance, told BusinessLine here.

As a regulator for overseeing insolvency proceedings and insolvency related entities, the Insolvency and Bankruptcy Board of India (IBBI) was established in October 2016. The whole objective of IBC is to provide a market-determined, time-bound mechanism for orderly resolution of insolvency wherever possible and orderly and easy exit wherever required.

Earlier, after inaugurating a new facility here where the IBBI will be housed, Meghwal said implementing IBC has become the Centre’s “highest priority”. IBC is one key intervention of the government that will take India into a leadership role among the comity of nations, Meghwal said. IBBI should “not be intrusive” but guide the market in the right direction rather than look to control it, he said.

IBBI Chairman MS Sahoo said that the regulator will, in the next few days, notify new regulations for information utilities, which will make information available instantaneously. “Neither the tribunals nor the stakeholders will have to run around to gather information to establish the default,” Sahoo told BusinessLine .

Information utilities are expected to collect, collate, authenticate and disseminate financial information of debtors in centralised electronic databases.

Creditors will be required to provide financial information of debtors to multiple utilities on an ongoing basis.

Also in the next few days, IBBI will notify regulations around voluntary liquidation. “We expect very transactions. But we are keeping the system ready,” Sahoo said.

 

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