The Centre is hopeful that the bankruptcy and insolvency regime would become fully "operational" by end-December, Economic Affairs Secretary Shaktikanta Das has said.
Replying to questions at the National Conference on Insolvency and Bankruptcy Code 2016, organised by Assocham, Das also said the Centre proposes to provide a "fast-track" mechanism for resolution of small and medium enterprises (SMEs) and start-ups under the new regime.
The resolution will happen within 90 days for SMEs and start-ups, Das said, adding that the allowed period is 180 days for other enterprises.
Das highlighted that the Insolvency and Bankruptcy Code has a provision where Centre can notify a "class of businesses" that would be eligible for the "fast-track" route.
"It is our intention to bring the resolution of SMEs and start-ups under the fast-track mechanism," Das said.
Das also expressed confidence that between now and December the necessary information utilities and insolvency professionals would come into being.
FINANCIAL FIRMS
Das also said the Centre would strive to introduce a new Bill in the winter session of Parliament for resolution of financial firms.
The draft Bill for resolution of financial firms is already exposed for public comments, Das said.
The last date for sending comments is October 31.
The enactment of such a law would fill a gap in the resolution of firms, Das said.
The Insolvency and Bankruptcy Code 2016, enacted in May this year, does not cover financial firms/ banks. The Centre has, therefore, decided to enact a separate law for resolution of financial firms.
DEBT MARKET
Das expressed confidence that the enactment of the Bankruptcy Code would help in the development of a deep and vibrant debt/ bond market.