The recently announced guidelines by the Insolvency and Bankruptcy Board of India (IBBI) for the committee of creditors (CoC) are a step in the right direction, but Insolvency and Bankruptcy Code (IBC) experts feel that they will not be effective unless a monitoring mechanism is in place.
“There are no obligations for the CoC in these guidelines. They have not been issued under any law and are self-regulatory in nature. When the idea was conceptualised for the first time, IBBI was at least trying to get the Reserve Bank of India on board,” a senior IBC expert said.
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