Insolvency and Bankruptcy Board of India chairman M S Sahoo on 30 November 2019 said work is on to amend the Insolvency and Bankruptcy Code 2016 that will address cross-border insolvency. Sahoo had said the government is keen to introduce a globally accepted and well-recognised cross-border insolvency framework, which will make India an attractive investment destination, given the increased predictability and certainty of the insolvency process.
 
What
  1. There is a proposal to amend the IBC to provide for such cases like cross border insolvency and to address some of the problems that have come up, but I will not be able to say which are these, Sahoo told on the sidelines of 'Roadshow on Competition Law and Practice' organised by CII.
  2. The government had on November 15, notified Section 227 of IBC to deal with systemically important financial service providers with over Rs 500 crore assets, excluding banks for bankruptcy and empowered the RBI to do so.
  3. Meanwhile, talking about challenges expected in DHFL being sent to the National Company Law Tribunal by the RBI. 
  4. When IBC came in 2016, everything was new, and there was no insolvency professional, IBBI or all members of the NCLT, everything was created afresh, but it worked.
  5. The Reserve Bank of India had sent the troubled mortgage lender Dewan Housing Finance (DHFL) for bankruptcy proceedings, making it the first financial services player to go to the NCLT for debt resolution.
  6. RBI filed an application for initiation of corporate insolvency resolution process (with the NCLT Mumbai) against DHFL under Section 227 of the insolvency and bankruptcy code.
  7. Competition Commission of India chairman Ashok Kumar Gupta said CCI has constituted Competition Law Review Committee to study the existing framework to further strengthen it to inter-alia meet new economic challenges.
  8. The committee has submitted its report and there will be progressive amendments to the law very soon.
  9. The introduction of Green Channel is to enable fast- paced regulatory approvals of mergers and acquisitions to ensure ease of doing business.
Flashback
  1. The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws.
  2. The objectives of the Act are sought to be achieved through the Competition Commission of India, which has been established by the Central Government with effect from 14th October 2003. CCI consists of a Chairperson and 6 Members appointed by the Central Government. 
  3. It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.

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