The Insolvency and Bankruptcy Code (Amendment) Act, 2026 marks a significant evolution in India’s insolvency framework, promising faster resolutions and improved efficiency. But a key question remains: do these changes meaningfully benefit debtors and smaller stakeholders such as MSMEs, suppliers, and employees?
According to Saloni Kothari, Partner and Group General Counsel at BDO India, the answer is nuanced. The amendments do offer “tangible” benefits, but largely indirect ones.
At the core of the reform is an effort to compress resolution timelines. By reducing delays, the amended framework aims to preserve enterprise value, which has historically eroded during prolonged insolvency proceedings. This, in turn, can…