Calling for significant improvements with respect to the area of CoCs, Rao said even when the resolution plan is agreed upon, there have been instances of non-participation in the CoC meetings and a lack of effective engagement, coordination or information exchange among the members.
According to him, nominees of financial creditors in CoC are entrusted with responsibilities that far exceed their actual authority.
“It is in the larger interest of the creditors that issues related to the conduct are addressed by the members themselves without waiting for the regulatory prescription,” he said, adding when incentives are not perfectly aligned, deviations from best practices become the norm, he said, adding that “we need an enforceable code…
