Bankruptcy & Cross-Border Insolvency Laws in India- The Way Ahead', on 14th May 2016

The Indian Government has succeeded in bringing out the much awaited Insolvency and Bankruptcy Code (IBC). Both the Houses have passed it and now policy makers are considering the appropriate implementation strategy to get the institutions functioning. This new law is expected to ratchet up the performance of the Indian corporate bond market as well as relax the macro-economic strains due to the NPA crisis. These are likely to benefit monetary policy transmission in India by improving the bond-currency-derivative nexus. Overall, the IBC is the most crucial financial sector reform that the Indian government has achieved in recent years. Now the Government needs to follow up the good work by setting up the right institutional infrastructure: a regulator, information utitlities, the insolvency practitioners' profession and the adjudicating authority.