Strengthening Insolvency: New Guidelines to Tackle Financial Distress

Insolvency cases under Rs 100 crore should be managed by individual professionals, while larger cases go to entities, recommends a study by IIIP-ICAI. It emphasizes on improving the regulatory framework and suggests expanding IP roles beyond the IBC. Another proposal is to raise IPs' age limit to 75.

The Indian Institute of Insolvency Professionals of ICAI has unveiled a study emphasizing a specialized approach in handling insolvency cases based on financial scale.

Notably, cases under Rs 100 crore are suggested to be managed by individual professionals, whereas larger ones should be handled by entities.

The study also recommends augmenting the roles of insolvency professionals beyond the Insolvency and Bankruptcy Code, and proposes extending the professional age cap to 75 years.