Aimed at expediting legal processes involved in the insolvency framework, a new Insolvency Bankruptcy Code (IBC) 2.O is likely to take shape soon, said a top functionary of the Institute of Chartered Accountants of India (ICAI).
In the new rules, one of the important proposed measures includes the individual insolvency process. "Full-fledged individual insolvency framework is expected to be implemented soon. In future, the government is planning for a pre-package insolvency resolution process or PPIRP framework which is likely to be extended for bigger corporates as well," the ICAI official said in a presentation here on Sunday.
Besides, the use of technology in the IBC ecosystem to handle several processes under the Code with minimum human interface is under consideration by the Ministry of Corporate Affairs ( MCA) and Insolvency Bankruptcy Board of India (IBBI),” the official said.
Responding to a question on the timeline of the implementation of IBC 2.O, ICAI President Chartered Accountant Aniket S Talati said, "We have been actively involved with the insolvency law committee chaired by the MCA secretary and other stakeholders. It all depends on the government but I expect it will happen very soon."
"The IBC 2.O will be largely based on the discussion paper issued by the government. One of the issues is the timeline of insolvency resolution but the court’s views are that the timelines are suggestive in nature," said Talati. Talati did not reveal further details on the new IBC rules.
Recently, the Indian Institute of Insolvency Professionals of ICAI (IIIPI) has reportedly constituted a board level committee of its directors to recommend measures for preparing the IBC ecosystem for the next phase of growth by envisioning future changes and imperative requirements.
"After over six years since the inception of the IBC, there is a need to consider futuristic challenges and recommend to IBBI and other authorities, changes required in the ecosystem and for preparing IIIPI and insolvency professionals to support these," IIIPI chairman, Ashok Haldai said.