Govt issues draft cross-border insolvency norms, seeks public comments
The Corporate Affairs Ministry said it is keen to introduce a globally accepted and well-recognised cross-border insolvency framework, fine-tuned to suit the needs of aspirational Indian economy
New Delhi:The government on Wednesday sought public comments on the draft norms on cross-border insolvency as part of efforts to put in place a comprehensive legal framework for insolvency cases involving overseas companies.
In a release, the Ministry of Corporate Affairs said it is keen to introduce a globally accepted and well-recognised cross-border insolvency framework, fine-tuned to suit the needs of aspirational Indian economy.
According to the ministry, there is a need to include cross-border insolvency in the Insolvency and Bankruptcy Code (IBC) to provide a comprehensive insolvency framework.
“Global experience demonstrates that cross-border investment decisions and their outcomes, are considerably affected by the insolvency laws in force in a country,” it said.
“Inclusion of cross-border insolvency framework will further enhance ease of doing business, provide a mechanism of cooperation between India and other countries in the area of insolvency resolution, and protect creditors in the global scenario,” it noted.
Further, the ministry said such a framework would also make India an attractive investment destination for foreign creditors given the increased predictability and certainty of the insolvency framework. Comments on the draft norms can be submitted till 30 June.
Globally, the UNCITRAL (United Nations Commission on International Trade Law) Model Law on Cross-Border Insolvency, 1997 (Model Law) has emerged as the most widely accepted legal framework to deal with cross-border insolvency issues.
Due to the growing prevalence of multinational insolvencies, the Model Law has been adopted by 44 states, including Singapore, the UK and the US, the release said.
- GST rates cut: From refrigerator to washing machine, 88 items to get cheaper
- 3 terrorists killed in encounter in Jammu & Kashmir’s Kulgam district
- GST rates slashed on several products
- Won’t join NDA for 2019 elections, says Chandrababu Naidu
- TMC will sweep in all 42 Lok Sabha seats in West Bengal, says Mamata Banerjee
Editor's Picks »
- What ABB India’s performance in June quarter says about capex growth
- Bajaj Finance does well in Q1 even as competition hots up
- Kotak Mahindra Bank: The perils of being priced to perfection
- Higher cane price crushes hopes of sugar mills
- Market optimism before 2019 general election: History may not repeat itself