IBBI issues fresh norms to speed up voluntarily liquidation
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The Insolvency and Bankruptcy Board of India (IBBI) has issued a fresh set of rules to fast track voluntary liquidation by companies under the Insolvency and Bankruptcy Code (IBC).
The amendments to the IBBI (voluntary liquidation process) regulations notified on Tuesday sharply cuts short the time allowed to complete various procedures, showed an official order.
As per the new regulations, the timeline for preparation of list of stakeholders by liquidators has been shortened to 15 days from 45, specifically in case where no claim from creditors has been received till the last date for receipt of claims,
New norms also say that the liquidator has to try to complete the liquidation process and submit a final report, within 270 days from the liquidation commencement date in certain cases and in 90 days in other cases. The earlier provision had provided for a blanket 12 months for the process.
The new rules clearly seek to cut short the time taken for completing the liquidation process so that whatever assets are left in the company do not lose its value.
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