IBBI reduces timelines for activities under voluntary liquidation process

IBBI has notified amendments to voluntary liquidation process regulations wherein timelines, including for distribution of proceeds from realisation, have been reduced in order to ensure faster exit for firms.

The amended regulations have come into effect from April 5.

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The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).

According to an official release, it has been noticed that there has been a substantial delay in the completion of voluntary liquidation process.

To curtail such delay and ensure faster exit for firms, the amended regulations have modified timelines for some stipulated activities undertaken during the voluntary liquidation process.

One of the changes is that the liquidator should distribute the proceeds from realisation within 30 days from the receipt of the amount to the stakeholders. Earlier, the timeline was 6 months.