Amid concerns in certain quarters that the insolvency law has led to more liquidations than resolutions of stressed assets, Corporate Affairs Secretary Rajesh Verma on Saturday, April 30, 2022, pitched for having a framework to study the impact of the legislation.
Emphasising that the government and regulator IBBI have been constantly making course corrections to address any gaps in the Insolvency and Bankruptcy Code (IBC), he also said the law has brought in a cultural shift in the dynamics between lenders and borrowers as well as promoters and creditors.
The IBC, which came into force in 2016 and has undergone six amendments so far, provides for a time-bound and market-linked resolution of stressed assets.
