Henry Paulson, former US treasury secretary and Goldman Sachs chairman, is believed to have once said that regulation always lags innovation. It is also true, conversely, that good regulatory frameworks always anticipate changes, or require minimal tweaking as changes occur. Indias bankruptcy regulator, the Insolvency and Bankruptcy Board of India (IBBI), has been forced to ponder its efficacy and regulatory remit as the process under its watch threatens to go off the rails, gamed by various agents. The IBBI has put two discussion papers out for stakeholder feedbackon strengthening our framework for liquidation, and on issues related to the corporate insolvency resolution process (such as whether the committee of creditors, or CoC, sho…
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