Insolvency professionals should make all efforts to further improve insolvency ecosystem: Official

Insolvency professionals should make all possible efforts to improve the overall insolvency ecosystem that will help in increasing the confidence of prospective bidders of stressed assets and ensuring better resolution prospects, according to a senior official.

At a conference here on Friday, IBBI Chairperson Ravi Mital also said that insolvency professionals should compile details about delays and litigations, and work towards minimising them.

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

''If delays are reduced, venture capitalists will be encouraged to invest in stressed assets,'' Mital was quoted as saying in a release issued by IIIPI.

The Indian Institute of Insolvency Professionals of ICAI (IIIPI) organised the conference on 'Developing Markets for Stressed Assets in India'.

Mital said that insolvency professionals should make every possible effort to improve the insolvency ecosystem in the country, which will ultimately increase the confidence of prospective bidders in the stressed assets and ensure better resolution of the corporate debtors, as per the release.

IIIPI Chairman Ashok Haldia said the ultimate objective of the IBC is to reduce stressed assets and the focus of the IBC 2.0 is to ensure the speedy resolution of the cases.

Among others, IIIPI has made peer review mandatory for a certain class of insolvency professionals.

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