What Is the New Insolvency Bankruptcy Code Or IBC?

Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts

    Today India's sovereign bond gained in respect of Moody's rating which provides the country a more stable outlook. With it many positives are around the corner one of them is the borrowing getting cheaper from the overseas markets.

    What Is the New Insolvency Bankruptcy Code Or IBC?

    Some of the economic reforms factored in for providing the upgrade are the country's back to back reforms by way of either as new revised insolvency bankruptcy code, demonetisation, GST. So, what is this new IBC code. Here in detailed some of the important aspects pertaining to the same.

    The main idea of the new IBC was to narrow down the ballooning NPAs with the banking sector which saw no respite.

    The provisions tightened the strings of bank in terms of lending as they can now lend with compassion.

    The defaulters and borrowers will come at a level playing field and errs or default on bad loans is expected to reduce going forward as they know if they default all their asset base shall be put to bankruptcy courts.

    Few of the other provisions which were absent earlier include:

    Timeline for the repayment of debt

    Cap in respect of debt grant to corporate

    Also to reduce as far as possible asset liability

    Today, NBFC companies are also seen to trade higher cheering the bank recapitalization and IBC moves of the government.


    Story first published: Friday, November 17, 2017, 11:38 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more