The Conclave brought together global thought leaders, legal experts, financial professionals, and stakeholders to discuss the latest trends, opportunities, and challenges in the insolvency and restructuring sectors. The event focused on both domestic and international perspectives on insolvency, with a special emphasis on India’s evolving framework under the (‘IBC’). The Conclave aimed to foster dialogue on best practices and innovative approaches, contributing to shaping future policies by integrating global insights into the Indian context.
The Conclave began with an inaugural session wherein the gathering was addressed by eminent guests namely, Mr M Rajeshwar Rao, Deputy Governor, Reserve Bank of India (Chief Guest), Mr Dinkar Venkatasubramanian, President, INSOL India, Dr Sonali Abeyratne, Technical Director, INSOL International, Mr Rajnish Kumar, Chairman of Mastercard, Former Chairman of State Bank of India (‘SBI’) and Mr Ravi Mital, Chairperson, IBBI.
In the welcome address by Mr Dinkar Venkatasubramanian, he remarked that over the last eight years, the banking system has improved and that there has been progress in this sphere. He mentioned that while India has a very strong insolvency system, it needs a larger, stronger, and more efficient ‘stressed asset’ ecosystem. Further, he shared a brief idea of the objectives of the conclave, and what it would entail. Lastly, he enlightened the audience about some key initiatives of INSOL India such as a focus group on operational turnaround, a special focus group on creditors, a study on the National Company Law Tribunal , and a ‘ten-year strategy refresh’.
Dr Sonali Abeyratne imparted a special address wherein she delved into the strategic review carried out by INSOL and the ideas for serving this community. She also gave a brief insight into what INSOL is, how it works, its members, events, as well as its future projects.
The gathering was then addressed by Mr Rajnish Kumar who elucidated the evolution of the insolvency and banking system while specifically referring to the state of affairs before and after the enforcement of the IBC. While sharing his experience as the chairman of SBI, he mentioned how the public refused to accept the IBC and that it was heavily litigated by promoters, creditors, along with other stakeholders. He also explained the role and responsibility of institutional creditors and the Committee of Creditors (‘COC’). Lastly, Mr Kumar highlighted the potential of technology for faster processing and the importance that IBC’s success holds for India.
Mr. Ravi Mital, in his special address, mentioned the range of projects and cases that the IBC has dealt with since its inception. Mr Mital delved into various aspects of the IBC including changes that the Code has had in creditor-debtor relationships as well as the adversarial nature of the admission process entailed therein. He mentioned that IBBI has previously made and will continue to develop regulations for reducing litigation and clarification, keeping in mind the harm caused by overregulation. Lastly, Mr. Mital elucidated various future projects such as the usage of technology, integration of mediation, creditor-led resolution process, and introduction of group insolvency.
“One thing is [to] use the law, but the other important thing is the fear of law”
– Mr. Ravi Mital
To conclude the inaugural session, the Chief Guest, Mr. M Rajeshwar Rao addressed the gathering and shared insights about the issues and challenges encountered by RBI in the last 8 years. Further, he mentioned that the present insolvency and bankruptcy regime as well as the Code are results of the recommendations of the Bankruptcy Law Reforms Committee, which were based on a few core principles of facilitating the assessment of the viability of the enterprise at an early stage, enabling symmetry of information between the creditors and debtors, ensuring a time-bound process to preserve economic value, respecting the rights of all creditors with clarity on priority, and ensuring finality of outcomes.
Mr. Rao also highlighted various issues that plague the system such as implementation issues, delays in meeting timelines, unsatisfactory recovery rates, delays in the initiation of the resolution process, etc. At the same time, he spoke about the positive changes brought by the IBC. He enlightened the gathering about some of the alternatives to the IBC mechanism such as RBI’s prudential framework for the resolution of stressed assets and the pre-packaged insolvency resolution process. Further, he delved into the central role of the COC, the issues faced by them, and the need for a code of conduct for them. Lastly, Mr. Rao highlighted the importance of feedback, data collection, and the use of technology in the IBC ecosystem.
“While the 2016 code remains a landmark legislation that has fundamentally altered the landscape of corporate practices in the country, the onus is on us to ensure that collectively we harness the potential of the code to create an enabling ecosystem that enables value preservation”.
-Mr M. Rajeshwar Rao
[The panel discussions will be updated soon.]
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