The Ministry of Corporate Affairs is reportedly preparing a Cabinet note on cross-border insolvency, which will be discussed soon by the Union Cabinet, sources told ETNow.
As the inter-ministerial consultations are now over, a bill on cross-border insolvency is expected to be introduced in the Monsoon session of the Parliament which will attempt to harmonise insolvency proceedings across jurisdictions; and hence expected to speed up the resolution of cases.
The framework will however broaden the scope of debt recovery, give foreign investors more confidence, and make doing business in the country easier.
Treaties with foreign authorities for cross-border insolvencies will be considered within the framework. After witnessing cases like and Videocon, it was reportedly felt that a cross-border framework was the need of the hour.
