A Study on Implementation of Insolvency and Bankruptcy Code (Ibc), 2016 and its Benefits to Stakeholders
Abstract
Non-Performing Assets (NPAs) or Non-Performing Loans are major problem for the banks these days. They have had a bad effect on the growth of Indian economy. It is quite intense which badly affects the banks and the country’s economy. This has led to insolvency. Insolvency is a situations that stimulates the legal process of bankruptcy. Insolvency and Bankruptcy Code (IBC), 2016 came as a ray of hope which offers a bright future of Indian economy with a strong corporate lending and investment culture. The code aims to strengthen the privileges of creditors by giving them the required remedy to take timely action against borrowers who are defaulting.
The objectives of the paper is to highlight on the Insolvency and Bankruptcy Code (IBC), 2016, its implementation and its benefits to stakeholders like banks and financial institutions, secured and unsecured creditors, Asset Reconstruction Company (ARC), Borrowers, Bond Market and employees. Based on the objective, research methodology has been adopted and statistical tools have been used with graphical presentation. To conclude, implementation of IBC is aiming at improving India’s status in the World Bank’s business ranking, inviting more foreign investors and also benefit the various stakeholders.