Reinforcing Self-Regulation in Insolvency Practice

Corporate Affairs Secretary Deepti Gaur Mukerjee emphasized the need for a self-regulating mechanism for insolvency professionals under the Insolvency and Bankruptcy Code (IBC) during an IBBI event. The Code, effective since 2016, aims for a market-driven resolution of stressed assets. Over 4,500 professionals and 6,000 valuers are registered under it.

Insolvency professionals must develop an effective self-regulating mechanism, according to Corporate Affairs Secretary Deepti Gaur Mukerjee. Addressing attendees at the annual Insolvency and Bankruptcy Board of India (IBBI) meeting, Mukerjee emphasized the significance of the insolvency law.

The Insolvency and Bankruptcy Code (IBC), introduced in 2016, offers a market-driven, timely resolution process for stressed assets, covering over 4,500 professionals and 6,000 valuers. Despite numerous amendments, no IBBI regulations have been invalidated by the courts.

Ravi Mital from IBBI reported that more than 1 lakh homebuyers have seen benefits through resolution efforts in the past nine years. Mukerjee emphasized shifting from enforcement to introspection and enhanced self-regulation, given the current regulatory boundaries.