The Insolvency and Bankruptcy Board of India (IBBI) has recommended several changes in the liquidation process under the Insolvency and Bankruptcy Code (IBC), in order to enhance overall efficiency, increase stakeholder confidence, and improve financial outcome for all parties involved.
One key change is to allow the IBBI to operate and manage the corporate liquidation account (CLA) “permanently”, and do away with the requirement of having the CLA within the Public Accounts of India (PAI). The move is expected to expedite claim processing and improve overall fund management, said the regulator in a discussion paper floated on Tuesday.
As per the current rules, the completion of the liquidation process requires that all the…
