NEW DELHI: The Bankruptcy Board is looking to shorten the time for insolvency resolution of smaller companies, which will also include startups, said Insolvency and Bankruptcy Board of India (IBBI) chairperson MS Sahoo.
We had put out a discussion paper to allow this for small companies which have a capital of less than Rs 50 lakh and a turnover of Rs 2 crore, he said, adding the idea is to bring down the time frame for resolution process from 180 days to 90 days.This will also include startups, as defined by department of industrial policy and promotion (DIPP), said Sahoo, adding all firms which do not have borrowing in excess of Rs 2 crore may be covered under the fast track process.
The bankruptcy code provides for a fast track pr…
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