Why in News?
Parliament passed Insolvency and Bankruptcy Code (Amendment) Act, 2026.
About Insolvency and Bankruptcy Code, 2016
- It was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
- Insolvency is a situation where individuals or companies are unable to repay their outstanding debt.
- Aim: Maximisation of value of assets, promote entrepreneurship, enhance availability of credit and balance the interests of all the stakeholders.
- It established the Insolvency and Bankruptcy Board of India (Board).
- Previous amendments to IBC, 2016:
- IBC (Amendment) Act, 2019: Set a 330-day limit for finishing the…