Insolvency is not a bad word and is merely an outcome of business operations. In fact, it is the absence of such exit opportunities that lead to a drain of national resources. That was the message from M.S. Sahoo, chairman of the Insolvency and Bankruptcy Board of India (IBBI), at the Mint conference on Bankruptcy ActImpact of the new law on the banking landscape, on 24 October.
Speaking at the conference Sahoo said the new insolvency and bankruptcy regulation is aimed at creating fear in the minds of promoters so that they do not default. The regulation would ensure that potential defaults are reduced and resources are better managed.
The objective of the new rules is that resources be put to use. That there are no default…
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