Creditors across the border will have to wait to be part of the insolvency process in India.While the sections pertaining to cross-border insolvency in the Insolvency and Bankruptcy Code have been notified, the rules are yet to be framed.
M S Sahoo, chairman of the Insolvency and Bankruptcy Board of India (IBBI), says that the rules are in the making. Sahoo told Business Standard: We are working on the rules for cross-border insolvency. We need to lay down what kind of agreements India should get into with other countries. It has to be decided what clauses should be part of those agreements.
Cross-border insolvency will help creditors from other countries that have a stake in Indian companies. Insol…
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