Why controlling CoC conduct could be a challenging task for IBBI

Experts say such a code could lead to litigation, which may affect the decision-making ability of the committee

While the Insolvency and Bankruptcy Board of India (IBBI) has proposed a code of conduct for the committee of creditors (CoC), industry experts feel the move is not required since most entities under CoC are well regulated already. Such a code could lead to litigation which may affect the decision-making ability of the committee, experts have cautioned.

Last week, the insolvency regulator invited suggestions on its discussion paper suggesting a code of conduct for CoC whose actions sometimes, as IBBI puts it, have been detrimental to objectives of the Code. IBBI has said that the CoC functions in an unregulated