38.6c New Delhi, India, Thursday, July 18, 2024
Executive

Chief Economic Advisor Subramanian Bats for More Reforms in the Bankruptcy Law

By Parul Singhal      19 October, 2020 03:11 PM      0 Comments
Reforms Bankruptcy Law IBC

The Chief Economic Advisor, Krishnamurthy Subramanian on Wednesday (14th October 2020) expressed that Indias four-year-old Insolvency and Bankruptcy Code, which has been amended five times since its enforcement, has scope for further improvements. 

 

Given the stress that had built up in the financial sector before we entered the crisis, we neither will nor have to take care of some stress that will inevitably happen because of COVID-19. The eco-system of creative destruction is a very important part of any economy, he said. 

RBI (Reserve Bank of India) estimates that gross bad loans may rise from 8.5% in March 2020 to anywhere between 12.5 to 14.4% by March 2021 due to COVID-19 induced stress. 

CEA stressed that assets are important components of a market economy and it is crucial to focus on various stakeholders that enable a process of creative destruction. 

Speaking at a FICCI webinar on Investment Opportunities in Stressed Assets in India, Subramanian further said that the IBC is an evolving process and there is still scope for making it far more efficient. He underlined that corporate India needs to recognize and respect the equity contract. 

To ensure a more flourishing market for distressed assets market, Subramanian said there was a need to focus on incentives for banks, especially public sector banks, along with establishing a market for price discovery of stressed assets. 

Sudhaker Shukla, a whole-time member of the Insolvency and Bankruptcy Board of India (IBBI), during the event, said that the board was developing a platform for stressed assets, which would eventually have an auction platform as well. Shukla said investors can easily find all information about the investment potential through this platform. 

Shukla claimed that recoveries under IBC had improved from 2 cents to a dollar to 71 cents to a dollar and the average time taken for resolution under the code had come down from 4.5 to 3 years to 1.6 years over the past three years. 



Share this article:



Leave a feedback about this
TRENDING NEWS

zero-fir-heres-all-you-need-to-know
Trending Know The Law
Zero FIR: Here’s all you need to know!

Understanding Zero FIR: Bharatiya Nyaya Sanhita Section 154 allows FIR at any police station. E-FIR under Section 173 ensures efficient crime reporting in India.

17 July, 2024 01:25 PM
judicial-activist-ashwini-upadhyay-asks-sc-to-declare-amendment-to-preamble-as-unconstitutional
Trending Judiciary
Judicial activist Ashwini Upadhyay asks SC to declare amendment to Preamble as unconstitutional

Judicial activist Ashwini Upadhyay petitions SC to declare the 42nd Amendment to the Preamble, which added "Socialist," "Secular," and "Integrity," as unconstitutional.

17 July, 2024 05:14 PM

TOP STORIES

bombay-high-court-denies-interim-relief-in-plea-against-1-year-pan-masala-ban
Trending Judiciary
Bombay High Court denies interim relief in plea against 1 year Pan Masala Ban [Read Order]

Bombay High Court denies interim relief to petitioners challenging the 1-year ban on pan masala, citing arguable questions and ongoing similar cases.

12 July, 2024 10:00 AM
sc-collegium-recommends-appointment-of-chief-justices-of-eight-high-courts
Trending Judiciary
SC Collegium recommends appointment of Chief Justices of eight High Courts [Read Order]

SC Collegium recommends appointments of Chief Justices for Delhi, Himachal Pradesh, J&K, Kerala, Madhya Pradesh, Madras, and Meghalaya High Courts.

12 July, 2024 10:55 AM
sc-orders-interim-bail-for-kejriwal-in-ed-case-refers-issues-on-arrest-to-larger-bench
Trending Judiciary
SC orders interim bail for Kejriwal in ED case, refers issues on arrest to larger bench

SC grants interim bail to Kejriwal in ED case, refers arrest issues to larger bench; AAP leader remains in jail due to separate CBI arrest in liquor scam.

12 July, 2024 11:21 AM
hathras-incident-sc-refuses-to-consider-pil-on-inquiry-adequate-compensation
Trending Judiciary
Hathras incident: SC refuses to consider PIL on inquiry, adequate compensation

Supreme Court declines PIL on Hathras stampede inquiry and compensation, directs petitioner to approach High Court for addressing the issue.

12 July, 2024 01:38 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email