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Insolvency Process for Small Companies, Startups, Reduced to 90 Days from 180
June 19, 2017
IBBI has provided directions for the facilitation of the resolution process of default cases within 90 days from the current 180. As per Corporate Persons Regulations, 2017, authorities may extend the resolution duration by 45 days, although RBI’s 12 major defaulters disclosed earlier this week don’t meet the criteria to qualify.
With the resolution processed slashed to 90 days, more investors are expected to be attracted towards start-ups in the country. The decision was a part of the government’s Start-up India drive as it wanted the startups to enjoy the comfort of easy exit within 3 months.
