India’s insolvency regulator, the Insolvency and Bankruptcy Board of India (IBBI), has proposed that MSMEs undergoing insolvency resolution should disclose whether they are formally registered as a micro, small or medium enterprise with the government.
In accordance with the MSME Development Act, 2006, enterprises are required to register on the MSME Ministry’s Udyam Registration portal for access to formal credit along with various government schemes.
Disclosing registration status as an MSME, said IBBI in a discussion paper on August 23, will likely reduce information asymmetry in the resolution process for such enterprises and encourage greater participation from units who may have otherwise been uncertain about their…
