ICAI submits suggestions on insolvency law amendments to Parl panel

New Delhi, Nov 6 (PTI) Chartered accountants' apex body ICAI on Thursday made its submissions to a Parliamentary panel on the proposed amendments to the insolvency law.

The Select Committee, headed by BJP member Baijayant Panda, is examining the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, which was introduced in the Lok Sabha on August 12.

A source said the Institute of Chartered Accountants of India (ICAI) made its submissions to the select committee on the amendments that are aimed at further improving the processes under the Insolvency and Bankruptcy Code (IBC).

Around 60 per cent of the insolvency professionals are chartered accountants. There are over 4,560 insolvency professionals registered with the Insolvency and Bankruptcy Board of India (IBBI).

IBBI is a key institution in the insolvency law ecosystem.

The amendment bill, introduced on August 12, has proposed a raft of amendments, including an out-of-court mechanism to address genuine business failures, group and cross-border insolvency frameworks.

Besides, provisions have been proposed to reduce the time taken for admission of insolvency resolution applications, to expand the definition of resolution plan and decriminalisation of certain actions.

In the Statement of Objects and Reasons for the bill, Finance and Corporate Affairs Minister Nirmala Sitharaman had said the proposed changes aim to reduce delays, maximise value for all stakeholders, and improve governance of all processes under the Code.

The Code, introduced in 2016, provides for a time-bound and market-linked resolution of stressed assets. The law has undergone six legislative interventions since its enactment, and the last amendment was made in 2021. PTI RAM SHW