NIFTY 50

MCA working to overhaul IBC, may propose amendments soon

Updated : May 27, 2019 11:11 PM IST

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.”
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV