The Ministry of Corporate Affairs (MCA) is working on tweaking the IBC further and will be soon sending proposals for amendments, CNBC-TV18 has learnt.
The amendments could include cross-border insolvency, address personal insolvency, group insolvency among others.
“It is cooperation model as far as cross-border is concerned. There are standard UNCITRAL governing laws. Ideally what happens is - there is protocol between one country and another, where if a company goes into insolvency in one jurisdiction, the other jurisdiction's legal processes can be conducted,” said Abizer Diwanji of EY India.
Speaking about the missing gaps in IBC, Diwanji said, “Pre-pact is another glaring regulation missing where companies can prearrange a resolution and then enter into IBC. I think that will show much better results in my view than what it currently does.”