Conceptual Framework


IBC sets the objectives for this key economic reform of addressing insolvency and to improve the ease of doing business. The highlights are:

  • Low time to resolution
  • Low loss in recovery
  • Higher levels of debt financing across more debt instruments
  • To promote entrepreneurship
  • Consolidate and amend the laws relating to Restructuring and insolvency resolution of Corporates, partnership firms and individuals

Information utility is designed as an institution for enforcement of contracts and is a pioneering effort:

To provide undisputed information for initiation of insolvency process

  • IU to act like a Credit Repository
  • Accept financial information from financial creditors and operational creditors
  • Financial information will get authenticated by all the parties of the debt and store to be used as evidence in the legal process
  • Provides a platform for the creditors and debtors-submission and authentication
  • IU is a Cost effective tool for
    • Proof of Borrower;
    • Proof of borrowing;
    • Proof of Security interest; and
    • Proof of Default.