The government will bring about ''necessary amendments'' in the Insolvency and Bankruptcy Code (IBC) to enhance corporate resolution and facilitate the cross-border insolvency process, Finance Minister Nirmala Sitharaman proposed in the Union Budget 2022-23.
The main objective of the Code is resolving the corporate debtors (CDs) in distress.
''Necessary amendments in the Code will be carried out to enhance the efficacy of the resolution process and facilitate cross-border insolvency resolution,'' stated Sitharaman.
The government had suspended the initiation of the corporate insolvency process under IBC for one year from March 25, 2021, to March 24, 2021, to provide relief to the firms undergoing stress due to the pandemic.
The Code has created a cohesive and comprehensive insolvency ecosystem and it has also opened possibilities of the resolution, including merger, amalgamation and restructuring of any kind besides opening opportunities to a host of professional service providers, the government said in the Economic Survey 2021-22 a day earlier.
(With inputs from PTI)
