To revive the financial sector in India currently plagued with stressed assets, FM Arun Jaitley in Union Budget 2016-17 vowed for comprehensive bankruptcy code, which will be enacted and brought in to deal with illicit deposit taking schemes.
Declaring financial sector reforms as one of the “nine pillars” of Budget 2016-17 Jaitley stated that such code will provide a specialized resolution mechanism to tackle with bankruptcy situations in banks, insurance companies and financial sector entities. The Bankruptcy Code, along with Insolvency when enacted will deliver a comprehensive resolution mechanism for Indias economy. It would set deadlines for processing insolvency cases.
According to World Bank data, India ranked an atrocious 136 o…
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