APAC: banking on new laws

Author: Karry Lai | Published: 26 Jan 2018
India and China are pressing the stop button on a number of business practices

India has been actively revising its insolvency laws to tackle the rise in non-performing assets (NPAs), and streamline the insolvency resolution and liquidation process. Following the enactment of the Insolvency and Bankruptcy Code 2016 (ICB), the Reserve Bank of India (RBI) was given authorisation to issue directions to banks to initiate insolvency resolution processes for defaults and stressed assets.

The RBI has since targeted 12 accounts that make up 25% of NPAs and a second list of about 40 defaulting companies for banks to begin the insolvency process under the ICB. Changes to the ICB were made in November to disqualify certain types of persons...