Criticism of the IBC’s recovery record is unwarranted

Synopsis: The Insolvency and Bankruptcy Code (IBC), which was promoted as a panacea to the problem of bad loans, has been attacked as being ineffective at best and counterproductive at worst. It requires a more nuanced debate. Introduction In recent months, a landmark economic reform of the last decade has come under criticism from various… Continue reading Criticism of the IBC’s recovery record is unwarranted

Another IBC fix? (On a Code of Conduct for CoC)

Synopsis: Regulator’s proposal for code of conduct for the Committee of Creditors (CoC) deserves scrutiny. Introduction The Insolvency and Bankruptcy Board of India (IBBI) has issued a discussion paper on the corporate insolvency resolution process and invited comments on its suggestions. What is the issue? CoC is unregulated, since the members of the CoC are… Continue reading Another IBC fix? (On a Code of Conduct for CoC)

Integrity of insolvency processes: A tough ask

Source: This post is based on the article “Integrity of insolvency processes: A tough ask” published in Live Mint on 2nd September 2021. Syllabus: GS3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment Relevance:  Role of Insolvency bankruptcy code in maintaining the health of financial institutions. Synopsis: Issues hampering the… Continue reading Integrity of insolvency processes: A tough ask

India remains a very difficult country for dying companies

Source: Live Mint Relevance: Insolvency bankruptcy code and corporate failure Synopsis: The failure of Insolvency bankruptcy code to achieve its intended objectives is dubbed as ‘isomorphic mimicry’ by developmental scholars. What is ‘isomorphic mimicry’? It is the tendency of governments to mimic (copy) other governments’ successes, replicating processes, systems, and even products of the “best… Continue reading India remains a very difficult country for dying companies

HAS IBC DELIVERED ON ITS LOFTY PROMISE?

Source: Live Mint Relevance: IBC process is one of the most important aspects of industrial growth. Synopsis: IBC Process has been a mixed bag of achievements and challenges. This article highlights issues and achievements of, and ways to improve the IBC process. Recently, the chairperson of the standing committee on finance, Jayant Sinha informed parliament… Continue reading HAS IBC DELIVERED ON ITS LOFTY PROMISE?

Bad loans: Prevention is better than cure

Source: Business Standard Relevance: Issues related to banking sector in India Synopsis: In managing the bad loan problem, IBC should be the last resort for banks. Context The Standing Committee of Parliament attached to the Ministry of Finance has taken stock of The Insolvency and Bankruptcy Code and made suggestions for improvement. Different models of… Continue reading Bad loans: Prevention is better than cure

Our bankruptcy code deserves credit for what it has achieved

Source: Live Mint Synopsis: An examination of the IBC’s record on resolving cases of business insolvency reveals greater success than critics acknowledge Background Analysis of IBC’s performance: Added points A good insolvency system cannot be judged by the number of companies being liquidated. Because the purpose of insolvency law is to swiftly liquidate firms that… Continue reading Our bankruptcy code deserves credit for what it has achieved

IBC process needs a re-look – Explained, pointwise

Source: Livemint, The Business Standard Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth Relevance: The Insolvency and Bankruptcy Code (IBC) is the key instrument aimed to address corporate distress. Introduction Many experts are questioning the Insolvency and Bankruptcy Code (IBC) and its effectiveness. Recently, The IBC process for the sale of… Continue reading IBC process needs a re-look – Explained, pointwise

Insolvency and bankruptcy code – present challenges: Explained, pointwise

Source: The Hindu  Syllabus: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation. Relevance: The Insolvency and Bankruptcy Code (IBC) is the key instrument aimed to address corporate distress. Introduction Recent National Company Law Tribunal (NCLT) rulings have put the spotlight on the IBC. The Insolvency… Continue reading Insolvency and bankruptcy code – present challenges: Explained, pointwise

Bank NPA

Union Minister of Finance informed Lok Sabha about the present state of Bank Non Performing assets(NPA) in India. The minister said that as per RBI provisional data on global operations, the aggregate amount of gross NPAs of Public sector banks(PSBs) and Scheduled Commercial Banks(SCBs) till 31st March,2019 were Rs.8 lakh crore and Rs. 9.5 lakh… Continue reading Bank NPA