IBC Transparency & Faster Resolution for Better Recovery: IBBI Chief

New Delhi, Jul 12 (PTI) IBBI chief Ravi Mital on Friday urged insolvency professionals to be as transparent as possible, provide more information to stakeholders and ensure faster resolution of stressed assets for better recovery.

He also emphasised that no one will take action against the insolvency resolution professionals for "genuine innovations" in carrying out the resolution process.

The Insolvency and Bankruptcy Code (IBC), which provides for a market-linked and time-bound resolution of stressed assets, has helped in returning more than Rs 3.4 lakh crore to creditors.

The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the IBC, which came into force in 2016.

Mital asked the insolvency professionals to complete the resolution process fast and ensure that the assets are sold as a going concern.

"No one gets credit if a firm gets liquidated," the IBBI Chairperson said, adding that efforts should be made to improve the quality of information memorandum related to assets under resolution.

"Be as transparent as possible," and make as much information as possible for the stakeholders, he noted.

Such steps will help further improve the recovery rate, Mital said, while stressing that the current recovery rate is not bad.

Providing data, he said that under the IBC, around 32 per cent of admitted claims have been recovered while the recovery rate is more than 80 per cent on a fair value basis.

He was speaking at the inaugural session of the International Convention on Insolvency Resolution and Valuation organised by the chartered accountants' apex body ICAI in the national capital.