1. Institutional Infrastructure in the IBC

2. The Processes proposed in IBC for individuals
Fresh Start is a process by which individuals with debts lower than a specified amount (arrived at using NSSO and Planning Commission data) will have their debts written off, and be given a“fresh start”. Insolvency Resolution Process (IRP) will involve a process of negotiation between debtors and creditors, outside the court through the Resolution Professional (RP), leading up to a repayment plan. Discharge will be possible only as Bankruptcy procedure (BP) is a process led by the Adjudication Authority, once the IRP has failed. Discharge in the form of “discharge-from-bankruptcy

3. Institutional infrastructure
A private competitive industry of Information Utilities
A private competitive industry of Insolvency Professionals
Efficient and well functioning tribunals
An independent and well-governed regulator

4. Information Utilities
Other Committees views on credit information
Nachiket Mor
The vision:
Ubiquitious
Interoperable
Definitive
Low cost
Provisions in the IBC more limited
Impact beyond bankruptcy
Challenges in implementation:
Non cash transactions
Leakages / fraud
Cost

5. Insolvency Professionals
Significant reliance on the IP in all three processes:
Adjudicating authourity relies on IP’s report for eligibility for fresh start
In IRP:
Drives the formulation of the repayment plan by the debtor
Submits report to Adjudicating authourity
Calls meetings of creditors
Monitors the implementation f the repayment plan
In Bankruptcy:
Trustee administers the estate
Recommends discharge to the Adjudicating authourity

6. The challenges in implementation
Who will IPs be?
Loan agents?
Bank employees?
Local adminsitration?
Will involvement of local law enforcement be required?

7. Adjudicating Authority
Debt Recovery Tribunals
Geographic reach
Augment number and resources
Current resources abysmal
The vision:
FSTS
Harness role of technology

8. The Regulator The Insolvency and Bankruptcy Board of India
Malleability of rules and regulations and processes
Consumer protection during insolvency / bankruptcy
Regulate IPs
Entry barriers, conduct, penalties
Regulate IUs
Access, accuracy,privacy
Governance of the IBBI

9. THANK YOU