New Delhi: The corporate affairs ministry on Monday evening issued final rules for registering and regulating insolvency professional agencies, which will be critical cogs in the introduction of Indias bankruptcy code.
The Insolvency and Bankruptcy Code, 2016, passed by Parliament in May, aims to improve the ease of doing business in India by facilitating smoother and time-bound settlement of insolvency and faster turnaround of businesses, apart from creating a database of serial defaulters.
Under the rules, a company must have a minimum net worth of Rs10 crore and paid-up share capital of Rs5 crore to qualify for registration as an insolvency professional agency (IPA). Control of the IPA should be with Indian residents. The…
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