New Delhi [India]: Lauding the Insolvency and Bankruptcy Code (IBC), Finance Minister Nirmala Sitharaman on Tuesday said it has improved business environment in the country by making it easier for businesses to exit in case of difficulties.
"We have reached a stage where we can stand up for international standards in ease of doing business which is also going to help us. For people wanting to do business and not fear doing business because you are not going to get into this and not know the way to come out of it," she said.
Sitharaman, who was speaking at 3rd Annual Day Of Insolvency And Bankruptcy Board Of India (IBBI), said that the IBC is a graceful path for anyone who is planning to get out of his business.
"Today, we are at a stage we have something before us which every now and then... periodically responding to the demand of the time if some amendments are made, will be robust enough to give an honourable exit for anyone who has started a business, ran it for sometime and has reached a stage where resolution was required either way with him continuing or without him," she said.
"When resolution had to make for insolvent companies or companies which were so stressed that insolvency was the only option left, it wasn't glorious. The path was not glorious or ideal. You have had various attempt solving such situations none of them came with up an ideal resolution mechanism," she said.
In August, the Parliament passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2019 that provides a 330-day timeline for insolvency resolution process and specifies minimum payouts to operational creditors in any resolution plan.