Curation Team
NEW DELHI: Insolvency professionals and valuers should look at having a very effective self-regulating mechanism, Corporate Affairs Secretary Deepti Gaur Mukerjee said on Wednesday as she highlighted the importance of the insolvency law.
Speaking at the ninth annual day of the Insolvency and Bankruptcy Board of India (IBBI) in the national capital, Mukerjee also said there is a long way to go on the Insolvency and Bankruptcy Code (IBC) as the expectations are high.
The Code, introduced in 2016, provides for a market-linked and time-bound resolution of stressed assets.
There are more than 4,500 registered insolvency professionals and 6,000 registered valuers under the Code.
While emphasising that “this is not the time for policing everybody”, Mukerjee said it is time for doing a lot of introspection and coming up with possibly a very effective self-regulating mechanism for insolvency professionals and valuers.
There is a Code of Conduct for the insolvency professionals and valuers.
The Code of Conduct or a disciplinary mechanism only has a limited kind of effect, and the real thing is to have self-regulation, the secretary said.
IBBI Chairperson Ravi Mital said more than 1 lakh homebuyers have benefitted through the resolution of realty projects under the Code in the last nine years.
He also said 125 amendments have been carried out in IBBI regulations, and none of the regulations have been found to be wrong by either the High Courts or the Supreme Court.
IBBI is a key institution in implementing the Code.
