The COVID-19 pandemic and its aftermath has caused a severe economic disruption in India. Many businesses are facing financial distress and financial liquidity issues. Sustainable economic recovery will require an efficient resolution system, which enables viable and competitive firms to restructure their liabilities, and allows capital to be reallocated from unviable firms to healthy ones. Lastly, a good resolution framework helps improve macroeconomic stability by preventing the growth of “zombie” firms, and enabling troubled financial firms to be resolved smoothly.
In 2016, India's newly enacted bankruptcy law — the Insolvency and Bankruptcy Code (IBC), 2016 — reshaped the manner in which firm insolvencies occurred in the country. The implementation of this law has assumed a new dimension in the wake of the COVID-19 pandemic. The IBC was suspended by the government at the onset of the lockdown, and it is unclear when the suspension will end. Similarly, a legislation for resolving financial firms was introduced in the last Lok Sabha, but subsequently withdrawn. The efficient functioning of the IBC and the introduction of a mechanism for resolving financial firms are key components that will strengthen India’s recovery process.
Carnegie India is delighted to invite you to ‘Recovery and Resilience: A workshop on India’s Bankruptcy Resolution Framework.’ This workshop will examine the need for strengthening India’s institutional infrastructure for insolvency and bankruptcy in the wake of India’s economic slowdown.
The workshop agenda is as follows:
- 4:00 - 4:40 p.m.: Presentation on resolution for non-financial firms by Anirudh Burman, followed by comments from Susan Thomas.
- 4:40 - 5:20 p.m.: Presentation on resolution of financial firms by Suyash Rai, followed by comments from Shashank Saksena.
- 5:20 - 6:30 p.m: A panel discussion with Pratik Datta, Nikhil Shah, Anjali Sharma and Suharsh Sinha, moderated by Rajeswari Sengupta.
To submit a question for the event, please email firstname.lastname@example.org. Participants may also submit their questions through the Q&A box in the Teams webinar or the comments section on our YouTube livestream.