Bankruptcy Code 2.0 to be rolled out soon: ICAI

The Institute of Chartered Accountants of India on Sunday said reforms in Insolvency and Bankruptcy Code (IBC), 2016 are being worked upon and an IBC 2.0 is expected to be rolled out soon. The apex body of the chartered accountants said IBC 2.0 may include a full-fledged individual insolvency framework, pre-packaged insolvency for bigger corporates, group insolvency framework and use of tech in IBC.

During a presentation on IBC on Sunday, ICAI said, "Ministry of corporate affairs is looking for IBC 2.0 and is working very hard on it. The Insolvency and Bankruptcy Board of India (IBBI) and ICAI are together working on it and supporting the ministry of corporate affairs on it. We are expecting that within some time we will see IBC 2.0 which will certainly mitigate the issues pertaining to the insolvency resolution process."

"ICAI has been actively involved with the insolvency committee chaired by the MCA secretary and other stakeholders. IBC 2.0 will largely be based on the discussion paper issued by the government. It depends on the government, but I expect it to happen very soon," said Aniket S Talati, president, ICAI.

"Full-fledged individual insolvency framework is expected to be implemented soon. In future, the government is planning for a pre-package insolvency resolution process or PPIRP framework which is likely to be extended for bigger corporates as well," ICAI said during a presentation on IBC at a residential meeting in Agra on Sunday.

"Further, the group insolvency framework may also be implemented in the medium term as planned by the government. Besides, the use of technology in the IBC ecosystem to handle several processes under the Code with minimum human interface is under consideration by MCA and IBBI," it added.