The Insolvency and Bankruptcy Board of India (IBBI) has made several major modifications to liquidation regulations, which came into effect on 6 September. The changes will ensure better stakeholder participation, cut back on delays and streamline the liquidation process, offering greater value, said the IBBI.
Amendments to the regulation detail the manner and period of retention of records pertaining to the liquidation of both defaulting companies and individuals. The processes of liquidation and the time period to be followed by the committee of creditors (CoC) during the corporate insolvency resolution process are also made clear.
The duties of the stakeholders consultation committee, the adjudicating authority and the liquidator have also been detailed to ensure the applications for dissolution or closure are timely carried out, and that all instances of wrongful trading and fraudulent transactions are thoroughly checked.