Need objective assessment of working of insolvency law: IBBI chief

IBBI Chairperson M S Sahoo on Thursday pitched for a comprehensive and objective framework to assess the working of the insolvency law to make prompt course corrections.

His remarks come against the backdrop of diverse views being expressed on the overall impact of the Insolvency and Bankruptcy Code (IBC), which came into force in 2016.

The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the IBC, which provides for a market-linked and time-bound resolution of stressed assets.

"We need a framework for a comprehensive and objective assessment (of IBC)... to stay on course, assess performance... and make prompt course corrections," he said.

He was speaking at a conference on the five years of IBC organised by industry body CII.

Sahoo stressed that a tailor-made framework for an objective assessment of the working of the IBC is necessary "if we wish to move out from subjective views which are being presented as assessments".

The IBBI chief also called for efforts to find solutions in the market rather than "always ask for the state to find a solution for market problems".

The IBC has undergone six amendments in less than five years.