Cross-border insolvency panel recommends global UN model for framing law

Govt to internally debate matter and move Cabinet; amendment Bill to be tabled in Parliament thereafter

Foreign investors may be able to drag a defaulting Indian company into insolvency proceedings if recommendations of a panel on cross-border insolvency are accepted by the government. The same may also be true for Indian investors in foreign companies. 

The panel, headed by Corporate Affairs Secretary Injeti Srinivas, recommended using the UNCITRAL Model for cross-border insolvency. 

Cross-border insolvency norms will provide a mechanism to liquidate or recover from foreign assets of Indian companies undergoing insolvency or vice-versa. 

The model law deals with four major principles of cross-border insolvency -- direct access to foreign insolvency professionals and foreign creditors to participate