‘IBC not to address corporate fraud’

Kolkata, Jan 12 (IANS) The Insolvency and Bankruptcy Code 2016 is not aimed at addressing corporate ‘fraud’, a top official said here on Thursday.

The Insolvency and Bankruptcy Board of India (IBBI) would come out with regulation related to direct liquidation by March, the official said on the sidelines of a programme organised by the Confederation of Indian Industry (CII).

“This code is not going to address fraud and the entire corporate management. This provides the opportunity to all the stakeholders to trigger the process at the first available opportunity,” said IBBI’s Chairperson M.S. Sahoo.

“We will come out with a framework for voluntary liquidation approach that is direct liquidation by February end or by March,” he added.

The board notified five regulations, of which three were related to institutional arrangement.

He said three insolvency professional agencies and 974 insolvency professionals were registered with the board and they were now available for undertaking transactions.

“The board has also come out with two other regulations — one related to corporate insolvency resolution and other related to corporate liquidation,” he said.