Youth Destination Logo Final

New amendments to IBC can maximise recovery of stressed assets

Share with Your Friends

New amendments to IBC can maximise recovery of stressed assets

Recently the Insolvency and Bankruptcy Code (IBC) has been amended to maximize and speed up recovery.

Amendments made to IBC:

  • Lenders have been allowed to sell assets separately in cases where no resolution plan has been received as a whole.
  • Performance-based payment structure for resolution professional (RPs) has been announced.
  • RPs are professionals involved in insolvency proceedings. They are appointed to conduct the resolution process.
  • RPs receives a success fee once a company’s insolvency process is successfully resolved. The rate of this fee is not predetermined.

IBC was implemented in the year 2016. It has the following objectives:

  • Dealing with the problems of bad loans, and acting as a one stop solution for resolving insolvency and bankruptcy issues.
  • This law consolidates and amends several laws relating to reorganization and insolvency resolution of corporate persons, partnership companies and individual affairs.

Importance of IBC:

  • Reduces the time and cost of resolution of insolvency
  • Promotes ease of doing business,
  • It promotes change in the behavior of borrowers for speedy resolution etc.

Source – The Hindu

Download Our App

More Current Affairs

Click to Join Our Current Affairs WhatsApp Group

Join Our Whatsapp Group For Daily, Weekly, Monthly Current Affairs Compilation & Daily Mains Answer Writing Test & Current Affairs MCQ

In Our Current Affairs WhatsApp Group you will get daily Mains Answer Writing Question PDF and Word File, Daily Current Affairs PDF and So Much More in Free So Join Now

Register For Latest Notification

Register Yourself For Latest Current Affairs

September 2022
M T W T F S S
« Aug    
 1234
567891011
12131415161718
19202122232425
2627282930  

Mains Answer Writing Practice

Recent Current Affairs (English)

Current Affairs (हिन्दी)

Subscribe Our Youtube Channel

Register now

Get Free Counselling Session with mentor

Download App

Get Youth Pathshala App For Free

Open chat
1
Youth Destination IAS . PCS
To get access
- NCERT Classes
- Current Affairs Magazine
- IAS Booklet
- Complete syllabus analysis
- Demo classes
https://online.youthdestination.in/