Download Statutory Compliance

Institutional Infrastructure in the IBC
The Processes proposed in IBC for individuals
Fresh Start is a process by which individuals with debts lower than
a specified amount (arrived at using NSSO and Planning
Commission data) will have their debts written off, and be given
a“fresh start”.
Insolvency Resolution Process (IRP) will involve a process of
negotiation between debtors and creditors, outside the court
through the Resolution Professional (RP), leading up to a
repayment plan. Discharge will be possible only as
Bankruptcy procedure (BP) is a process led by the Adjudication
Authority, once the IRP has failed. Discharge in the form of
“discharge-from-bankruptcy
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Institutional infrastructure
•
A private competitive industry of Information Utilities
•
A private competitive industry of Insolvency Professionals
•
Efficient and well functioning tribunals
•
An independent and well-governed regulator
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Information Utilities
• Other Committees views on credit information
– Nachiket Mor
• The vision:
• Ubiquitious
• Interoperable
• Definitive
• Low cost
• Provisions in the IBC more limited
•Impact beyond bankruptcy
•Challenges in implementation:
•Non cash transactions
• Leakages / fraud
• Cost
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Insolvency Professionals
•
Significant reliance on the IP in all three processes:
• Adjudicating authourity relies on IP’s report for eligibility for fresh
start
• In IRP:
• Drives the formulation of the repayment plan by the debtor
• Submits report to Adjudicating authourity
• Calls meetings of creditors
• Monitors the implementation f the repayment plan
• In Bankruptcy:
• Trustee administers the estate
• Recommends discharge to the Adjudicating authourity
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The challenges in implementation
• Who will IPs be?
• Loan agents?
• Bank employees?
• Local adminsitration?
•
Will involvement of local law enforcement be required?
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Adjudicating Authority
• Debt Recovery Tribunals
– Geographic reach
– Augment number and resources
• Current resources abysmal
• The vision:
– FSTS
– Harness role of technology
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The Regulator
• The Insolvency and Bankruptcy Board of India
• Malleability of rules and regulations and processes
• Consumer protection during insolvency / bankruptcy
• Regulate IPs
• Entry barriers, conduct, penalties
• Regulate IUs
• Access, accuracy,privacy
• Governance of the IBBI
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THANK YOU
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