he Insolvency and Bankruptcy Board today sought comments from the public on draft norms for insolvency resolution process for individuals running businesses and personal guarantors.
Comments have been sought on draft regulations pertaining to insolvency resolution process for individuals and firms. Views have also been invited on draft norms relating to application to adjudicating authority for insolvency resolution process for individuals and firms. The regulations come under the Insolvency and Bankruptcy Code.
For now, the Insolvency and Bankruptcy Board of India is looking to put in place the framework for insolvency process in relation to two categories of people – guarantors to corporate debtors or personal guarantors, and individuals having businesses such as partnership, proprietorship and startup.
The move follows a IBBI-constituted working group submitting a report on the insolvency resolution process of individuals and firms, according to an official release. The working group intends to submit a separate report for the bankruptcy process of individuals and firms, it added. Under the Code, cases related to insolvency of individuals would go before the Debt Recovery Tribunal.
In a recent interview, IBBI Chairperson MS Sahoo had said one of the priorities is to operationalise the individual insolvency regime in respect of guarantors to corporates and individuals with proprietary businesses. Comments on the draft norms can be submitted to the IBBI till October 31, the release said.
The Code, being implemented by the IBBI, became operational in December last year and provides for a market-determined and time-bound insolvency resolution process.
As carried in BQ