The Lok Sabha passed the Insolvency and Bankruptcy Code Bill 2016. This bill is being seen as a transformational legislation that will help in improving India’s ranking in the World Bank’s ‘Ease of Doing Business’ index.
The bill is based on the recommendations of the Joint Parliamentary Committee on the Insolvency and Bankruptcy Code, 2015 chaired by Bhupender Yadav. On 28 April 2016, The committee submitted the report to the government. The bill provides for setting up of an Insolvency and Bankruptcy Board of India to regulate professionals, agencies and information utilities engaged in the resolution of insolvencies of companies.