Evolving with changing scenarios will be crucial for Insolvency and Bankruptcy Code (IBC) as it could become the most potent instrument in driving proactive responsible behaviour among lenders and prove to be a boon for the economy, Minister of State for Corporate Affairs Rao Inderjit Singh said on Saturday.
He was speaking at an international research conference on insolvency and bankruptcy organised by the Indian Institute of Management Ahmedabad (IIM-A) in collaboration with Insolvency and Bankruptcy Board of India (IBBI).
“While the Code has had a remarkable journey so far, going forward, evolving with changing scenarios will be crucial ... Like everything else, this reform should keep evolving,” the minister said.
“As IBC evolves further, it could become the most potent instrument in driving good credit behaviour and ethical business practices amongst borders and proactive responsible behaviour among lenders, proving to be a boon for the economy and to the nation...We must learn from the outcomes and strengthen the Code so that the law is robust over time,” Singh said.
The minister said streamlining the CIRP (Corporate Insolvency Resolution Process) and liquidation process will further help in consolidating the progress made to secure gains to the economy.