New Delhi: Finance minister Arun Jaitley on Tuesday asked finance and corporate affairs ministry officials to implement the Insolvency and Bankruptcy Code, 2016 in a time-bound manner to achieve the goals of the new law.

Parliament on 11 May passed the Code, which will ensure smoother settlement of insolvency, enable faster turnaround of businesses and create a database of serial defaulters. It is also likely to help India move up from its current rank of 130 in the World Bank’s ease of doing business index.

The bankruptcy law is overarching in its nature, covering individuals, companies, limited liability partnerships and partnership firms, and will also deal with corporate insolvency.

The law on bankruptcy envisages creating a complementary ecosystem including insolvency professionals, information utilities and a bankruptcy regulator.

Jaitley asked for immediate action on setting up the Insolvency and Bankruptcy Board of India (IBBI), which is the regulator, and notifying rules and regulations relating to insolvency professionals and insolvency professional agencies.

It was crucial that the bankruptcy code be implemented in a time bound manner to achieve the goals of the code, Jaitley said at a meeting on the implementation of the bankruptcy Code.

The minister asked officials to notify National Company Law Tribunal (NCLT) benches to deal with cases involving corporate insolvency and take action for registration of insolvency professionals and insolvency professional agencies.

Tapan Ray, secretary, ministry of corporate affairs, assured the meeting of a time-bound implementation of the code.

The government aims to make the bankruptcy code functional by the end of financial year 2016-17, then minister of state for finance Jayant Sinha told Mint in May.