International Conference on Insolvency and Bankruptcy: Minister says BAC has provided an effective ecosystem for insolvency resolution

ByDonald L. Leech

May 2, 2022

The first two-day International Research Conference on Insolvency and Bankruptcy organized by Indian Board of Insolvency and Bankruptcy (IBBI), jointly with Indian Institute of Management Ahmedabad (IIMA), will ends on Sunday.

Minister of State for Statistics and Program Implementation, Planning and General Affairs Rao Inderjit Singh highlighted the journey of the Insolvency and Bankruptcy Code (IBC), 2016, and praised the significant contribution he has made in establishing an effective insolvency framework and ecosystem. resolution in the economy.

According to a statement released by IIMA, in his inaugural address, Singh said the Code had taken on greater importance during the Covid-19 pandemic and had helped save both lives and livelihoods.

He also commended the extraordinary contributions of the judiciary, government agencies, regulators and stakeholders in the CIB ecosystem to facilitate rapid and effective implementation of the Code.

He pointed out that the introduction of the proposed framework for cross-border insolvency resolution will be a decisive step in redefining India’s trade and economic relations with the rest of the world.

The two-day research conference was hosted by IIMA’s Misra Center of Financial Markets. Other associate partners of the conference include National Stock Exchange, State Bank of India, BSE Investor Protection Fund and National Institute of Securities Markets.

Rajesh Verma, Secretary of the Ministry of Corporate Affairs (MCA), stressed the need to promote research culture within the regulatory framework. Noting the achievements of the Code, he also pointed out that a comprehensive IT platform for processes under the Code is being developed.

While Mr. Rajeshwar Rao, Deputy Governor of the Reserve Bank of India (RBI) underscored the importance of timely resolution of troubled assets for the banking sector, Ravi Mital, Chairman of IBBI underscored the importance evidence-based research in policy-making.

He stressed that time is the essence of the Code and that fundamental research efforts should be made by all stakeholders to reduce delays at all stages of insolvency resolution, from recognizing stress to the final resolution.

Professor Errol D’Souza, Director of IIMA, said: “Just a few months ago, the Parliamentary Standing Committee on Finance raised questions about insolvency and bankruptcy. Some of the findings they reported were interesting and we thought this was a great opportunity to go back to the drawing board and think about what’s going on in this very important part of the economy. This conference is the right time for us to do so.

The closing day saw panel discussions on insolvency regime reforms, insolvency and bankruptcy resolutions. The conference also included a workshop on data-driven insolvency research, aimed at providing researchers with in-depth exposure to the data currently available for such research and emerging future developments.