Welcome to INSOL India Newsletter Volume II, Issue August | Aug 18, 2017

Greetings and Warm Welcome to all INSOL India members and friends!

We are pleased to present the second issue of the INSOL India Newsletter. As mentioned in our President's message in the first issue, in this issue also we continue to apprise our members about efforts and endeavours of INSOL India in the development of robust Insolvency ecosystem in India.

The 12 large accounts identified for Insolvency Resolution by the Reserve Bank of India are at different stages in the insolvency resolution process under the Code.  These accounts are not only large in terms of their debt profile but have their own complexities. Insolvency resolution process of these cases will be watched with keen interest as they are being seen as litmus test for effective implementation of the Code. The process of drawing up a resolution plan for each of these accounts will serve as a great learning for all the participants in the Insolvency Industry in India.

A large number of corporate accounts are already under Insolvency resolution process and many of these accounts have business interest overseas. Therefore, the need of the hour is to focus on Cross Border Insolvency framework applicable in India. Implementing the Insolvency Code for corporates has been the first step in increasing investor confidence in India. As stakeholders, we now need to contribute to ensure that a robust cross border insolvency framework is adopted sooner than later. Cross Border Insolvency framework helps in recognition of insolvency proceedings initiated in India in foreign jurisdictions and also helps in protection and preservation of assets situated outside India. Such framework will provide certainty in the insolvency resolution process, optimal realisation of value for all the stakeholders and effective rescue of financially troubled businesses.

Hearty Welcome to all INSOL India members and those who read this, to the second issue of our Newsletter!
 

Keeping in view INSOL India’s vision, we continue to endeavor for the development of a robust Insolvency eco system in the country. The Reserve Bank of India, after its ordinance, has identified 12 accounts with the banks and those cases are now before the Adjudicating Authorities, and resolution process has begun.
Cross-Border Insolvency Bill is now in the hands of the Government and it is understood that the same is under further process. Once the Cross-Border Insolvency Act is in place, the insolvency regime shall be complete, both international and domestic. INSOL India has contributed in drafting the Cross-Border Insolvency Bill and in this endeavor, has taken inputs from all stakeholders.

      INSOL India is continuing its march towards establishing a strong Insolvency regime. In the process, it has interacted with Insolvency experts from Hong Kong on August 11, 2017. Large number of Insolvency Professionals participated in the said interactions and took benefit of the same. In its pursuit, INSOL India is looking forward to the Insolvency Conference in Singapore later this month, followed by an Insolvency Summit next month and then a Moot Court Competition in October 2017, in association with the NLU Delhi.

The Working Group constituted by IBBI for framing rules and regulations as per Chapter III of the Insolvency and Bankruptcy Code 2016 has drafted the same and the same is getting the final touch.
This edition of the newsletter also covers the events that have taken place under the umbrella of the Insolvency and Bankruptcy Board of India (IBBI). The Best Practice Guidelines for Insolvency Professionals formulated by the Task Force constituted by INSOL India and SIPI are available on INSOL India’s website. We are looking forward to receiving inputs from all stakeholders to improvise and finalise the same, after which it would be circulated. No doubt, the guidelines would help ensure the best professional standard.
INSOL India’s membership is also growing.  It has already crossed 150 and by the year end we hope it would touch another milestone.
Members are always welcome to send their comments, suggestion and even small articles, which they consider are value adding. All in all, this is teamwork. Apart from members of INSOL India, other readers are also welcome to offer their comments and suggestions. And, criticism is always welcome!