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Mint
12-08-2025
- Business
- Mint
Govt introduces insolvency law amendment bill in LS; FM says changes aim to reduce delays
New Delhi, Aug 12 (PTI) The government on Tuesday introduced a bill in the Lok Sabha to amend the insolvency law, proposing a raft of amendments, including an out-of-court mechanism to address genuine business failures, group and cross-border insolvency frameworks. Besides, provisions have been proposed to reduce the time taken for admission of insolvency resolution applications, to expand the definition of resolution plan and decriminalisation of certain actions. Finance and Corporate Affairs Minister Nirmala Sitharaman introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, which was later referred to a select committee of the House, following the request of the minister. In the Statement of Objects and Reasons for the bill, the minister said the proposed changes aim to reduce delays, maximise value for all stakeholders, and improve governance of all processes under the Code. A senior government official said the amendments aim to facilitate faster admission, resolution, and liquidation processes, maximise asset value and improve governance. The much-awaited bill has proposed a "creditor-initiated insolvency resolution process", with an out-of-court initiation mechanism for genuine business failures to facilitate faster and more cost-effective insolvency resolution with minimal business disruption. "Once implemented, this will help ease the burden on judicial systems, promote ease of doing business and improve access to credit," Sitharaman said. The official said that under CIRP, select financial institutions can initiate insolvency outside court with approval from unrelated financial institutions, while the corporate debtor can continue to manage the company with oversight from a resolution professional, who would attend meetings of the Board of Directors and have veto powers. "The process includes a 30-day objection period for the corporate debtors, and the adjudicating authority can convert the CIRP into the standard CIRP if certain conditions are met, such as failure to reach a resolution within 150 days or rejection of the plan. The adjudicating authority will approve resolution plans with the same effect as under the existing CIRP framework," the official added. CIRP refers to the Corporate Insolvency Resolution Process. Besides, the government has proposed the group insolvency framework that seeks to efficiently resolve insolvencies, involving complex corporate group structures, minimising value destruction caused by fragmented proceedings and maximising value for creditors through coordinated decision-making. According to the bill, the cross-border insolvency framework seeks to lay the foundation for protecting stakeholder interests in domestic and foreign proceedings, promoting investor confidence and aligning domestic practices with international best practices. This will also pave the way for improved recognition of Indian insolvency proceedings in other jurisdictions. Against the backdrop of an average delay of over 434 days in admitting insolvency resolution applications, the government has proposed that an application by the financial creditors should be admitted if a default exists without considering any other grounds. Such a step will help reduce timelines for admitting applications related to financial debt. The government official noted that when an application is made by a financial creditor, who is a financial institution, the adjudicating authority should consider records of default from information utilities as sufficient evidence to ascertain the existence of such default. The Code mandates that insolvency resolution applications be admitted within 14 days. Another proposal is to expand the definition of resolution plans to include the sale of assets, and the right of the corporate applicant to propose the resolution professional is restricted to ensure fairer and more transparent appointments. "The proposed amendments restrict withdrawal of CIRP applications before the constitution of the committee of creditors and after the first invitation of the resolution plans, and also enable continuation of avoidance transaction proceedings post-CIRP," the official said. There are also provisions to have a timeline for approval of resolution plans after their receipt by the adjudicating authority, providing an opportunity to the committee of creditors to rectify procedural defects, among other elements. "Enhancement of recoveries from avoidance transactions, wrongful and fraudulent trading by extending the look back period and allowing creditors to also file for these transactions is included to maximise asset value," the official said. Also, the bill has proposed changes to enhance efficiency and oversight in the liquidation process by empowering the committee of creditors to supervise liquidation, including a provision for replacing the liquidator by a 66 per cent vote and extending the moratorium available under the CIRP to the liquidation process to speed up company dissolution. "They allow the adjudicating authority to restore the CIRP once, on the request of the committee of creditors, enabling potential rescue of viable companies. The committee of creditors can also recommend direct dissolution if assets are negligible, and can retain or appoint the Resolution Professional as liquidator. The amendments remove common activities between CIRP and liquidation, to reduce delays in liquidation," the official noted. According to the official, the proposed reforms aim to strengthen the insolvency ecosystem by addressing personal guarantor misuse, enhancing institutional capacity and improving regulatory governance. Other key changes include removing the interim moratorium for personal guarantors and introducing a provision to prevent transactions defrauding creditors, and an enabling provision for facilitating different processes for all stakeholders through an electronic portal is provided to enhance efficiency and transparency.
India Gazette
01-07-2025
- Business
- India Gazette
FM Sitharaman highlights India's reforms, investment opportunities in her address at FFD4 Summit in Spain
Seville [Spain], July 1 (ANI): Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, currently on an official visit to Spain, Portugal, and Brazil, delivered a strong pitch for mobilising private capital for sustainable development at the International Business Forum Leadership Summit titled 'From FFD4 Outcome to Implementation: Unlocking the Potential of Private Capital for Sustainable Development' in Seville, Spain. Addressing global leaders and investors, Sitharaman highlighted that while private investment has shown encouraging growth in recent years, thanks to a rise in innovative financial instruments and traditional sources, much more needs to be done. In a social media post, the minister said, 'Private capital mobilisation remains significantly below what is required, with low and middle-income countries receiving a disproportionately small share. This underscores the urgent need for targeted efforts to overcome investment barriers and better align financial flows with development priorities.' Highlighting India's own journey, Sitharaman stressed the importance of addressing perceived investment risks in emerging markets. India, she noted, has taken significant steps to overcome these challenges. Sitharaman stated, 'India has addressed this challenge by establishing independent regulators, implementing transparent bidding processes, standardising contracts, and improving the ease of doing business. These reforms have significantly enhanced investor confidence and reduced transaction costs.' The Finance Minister also highlighted the role of strong domestic financial systems. India has focused on strengthening its banking sector and deepening capital markets to support large-scale financing in infrastructure and industry. She said India's regulatory frameworks now better balance investor protection with innovation and flexibility, creating an enabling environment for long-term investment. FM added, 'Our regulatory frameworks have evolved with market needs - balancing investor protection with innovation and flexibility - creating a more conducive environment for long-term investment.' One of the standout examples presented by Sitharaman was India's transformation in the renewable energy sector. From just 2.8 GW of solar energy installed in 2014, India has expanded its capacity to over 110 GW. This success, she said, 'was enabled by clear national targets, streamlined procurement, and government-backed risk mitigation. This model attracted institutional investors, including pension and sovereign wealth funds.' On the sidelines of the FFD4 Summit, Sitharaman also held bilateral meetings with various global leaders. She met Shane Reti, New Zealand's Minister of Science, Innovation and Technology, Universities, Statistics, and Pacific Peoples. Both ministers discussed cooperation in defence, education, technology, and agriculture. The two leaders reaffirmed the shared democratic values and strong people-to-people ties between India and New Zealand. Sitharaman also spoke about India's growing International Financial Services Centre at GIFT City and highlighted investment opportunities in banking, bullion exchange, capital markets, the FinTech ecosystem, insurance, and reinsurance. She also noted the importance of educational ties, with many Indian students pursuing higher education in New Zealand. The Finance Minister also held talks with Reem Alabali-Radovan, Germany's Federal Minister for Economic Cooperation and Development. Sitharaman congratulated her on her new role and discussed cooperation under the India-Germany Green and Sustainable Development Partnership. The discussions included collaboration in areas such as green energy, urban mobility, sustainable urban development, and ecological livelihoods. Minister Alabali-Radovan expressed interest in deepening bilateral ties and enhancing cooperation with India. Sitharaman is leading an Indian delegation from the Department of Economic Affairs during this official trip from June 30 to July 5. Her itinerary includes a visit to Lisbon, Portugal, where she will hold a bilateral meeting with the Portuguese Finance Minister and interact with the Indian diaspora and investors. In Rio de Janeiro, Brazil, she will address the 10th Annual Meeting of the New Development Bank (NDB) as India's Governor and also participate in the BRICS Finance Ministers and Central Bank Governors Meeting. She is also expected to hold bilateral discussions with her counterparts from Brazil, China, Indonesia, and Russia. (ANI)
Time of India
20-06-2025
- Business
- Time of India
Finance Ministry pitches for improving export cargo facilities on ports
New Delhi: A finance ministry report on Friday made a case for improving gate infrastructure including IT systems, scanning facilities, temperature-controlled facilities for perishable export cargo across ports. Also, post-clearance logistics processes need to be improved to achieve faster release time and streamlined movement of cargo. Finance and Corporate Affairs Minister Nirmala Sitharaman released the fifth edition of National Time Release Study (NTRS), a performance measurement tool that provides a quantitative assessment of the time taken for cargo release. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo The NTRS 2025 is the fifth national-level edition of this annual study, conducted using a standardised methodology. It covers 62,981 Bills of Entry (BoEs) for imports and 69,533 Shipping Bills (SBs) for exports filed during the first week of January 2025. The study spans 15 major customs formations, grouped under four categories - Seaports, Inland Container Depots (ICDs), Integrated Check Posts (ICPs), and Air Cargo Complexes (ACCs) - which together account for a significant share of the total BoEs and shipping bills filed across India. Live Events In the import segment, the study said Average Release Time (ART) declined between 2023 and 2025 across seaports (about 6 hours), ACCs (about 5 hours), and ICPs (about 18 hours), while ICDs saw an increase of around 12 hours. Performance against NTFAP 3 targets showed that 93.33 per cent of import cargo at ICPs met the 48-hour target, followed by air cargo complexes (55.03 per cent within 24 hours), seaports (51.76 per cent), and ICDs (43.7 per cent). Export cargo analysis, from arrival to final departure, revealed varied patterns across port categories. Regulatory clearance (arrival to Let Export Order) was fastest at air cargo complexes (under 4 hours) and ICPs (06:10 hours), according to NTRS. At seaports, regulatory clearance averaged 29:36 hours, with post-LEO logistics extending to 157:50 hours. At ICDs, regulatory clearance of exports took 30 hours, with improvement in post-LEO logistics time to 99:51 hours. On facilitating export cargo, the study has made several recommendations, including for reduction of manual documentation processes at port gates and minimising instances of delays in duty payment. "In terms of infrastructure, there is scope for enhanced gate infrastructure (including IT systems), scanning facilities, temperature-controlled facilities for perishable cargo, etc across ports," the study said. Post-clearance logistics processes need to be improved to achieve faster release time and streamlined movement of cargo, it suggested. Regarding imports, the study said post-clearance delays, especially at ICDs, continue to impact overall efficiency, highlighting the need for targeted procedural and operational improvements. The ministry said a key strength of India's TRS lies in its use of accurate and reliable data sourced directly from the Customs Automated System, operated by the Directorate General of Systems and Data Management, CBIC. Over the years, the scope of TRS has significantly expanded. What began as a report measuring release time across select gateway ports went on to include other areas of considerable importance such as transit cargo, courier shipments, and commodity-specific assessments, it said.
Hans India
05-06-2025
- Business
- Hans India
EAM Jaishankar thanks Kyrgyzstan for support and solidarity in countering terrorism
New Delhi: External Affairs Minister (EAM) S. Jaishankar on Thursday held a meeting with Kyrgyzstan Foreign Affairs Minister Zheenbek Kulubaev Moldokanovich, discussing ways to enhance cooperation between the two countries and also thanking him for Bishkek's support and solidarity in countering terrorism. "A productive meeting with FM Zheenbek Kulubaev of Kyrgyz Republic. Thanked him for their support and solidarity in countering terrorism. Discussed our cooperation in banking, education, energy, health, connectivity and capacity building. Today's signing of Programme of Cooperation is a step forward in deepening our bilateral ties," EAM Jaishankar posted on X after the meeting. Along with Kulubaev, four other Central Asian foreign ministers - including Bakhtiyor Saidov (Uzbekistan), Rashid Meredov (Turkmenistan), Sirojiddin Muhriddin (Tajikistan) and Murat Nurtleu (Kazakhstan) - are in New Delhi to attend the two-day 4th India-Central Asia Dialogue as India continues to put a strong foot forward in enhancing anti-terror and de-radicalisation partnerships across the region. Earlier in the day, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and the visiting Kyrgyz Foreign Minister signed the Protocol and exchanged Instrument of Ratification of the Bilateral Investment Treaty (BIT) between both countries. The Bilateral Investment Treaty (BIT) signed on June 14, 2019 in Bishkek between the Government of the Republic of India and the Government of the Kyrgyz Republic, enters into force with effect from Thursday and replaces the earlier agreement enforced in May 2000, ensuring continuity in the protection of investments between the two nations. "The India-Kyrgyz BIT marks a significant milestone in strengthening bilateral economic relations and fostering a secure and predictable investment environment. The BIT aims to promote and protect interests of investors of either country in the territory of the other country," read a statement issued by the Ministry of Finance. The BIT balances the investor rights with the sovereign regulatory powers of both countries, and reflects a shared commitment to create a resilient and transparent investment climate. It is expected to further encourage cross-border investments and deepen economic cooperation between India and Kyrgyzstan. During the meeting held within the framework of the 4th Ministerial Meeting of the Central Asia-India Dialogue, both countries discussed the current state and prospects of Kyrgyz-Indian cooperation in the financial and investment sectors. "Particular attention was paid to the establishment of direct correspondent relations between banks of Kyrgyzstan and India and the development of investment cooperation in priority areas. The meeting concluded with confirmation of the parties' mutual willingness to strengthen cooperation between the financial institutions of the two countries," stated Kyrgyz Foreign Ministry.
Business Standard
05-06-2025
- Business
- Business Standard
India-Kyrgyzstan Bilateral Investment Treaty comes into force
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Minister of Foreign Affairs of the Kyrgyz Republic, Zheenbek Kulubaev Moldokanovich signed the Protocol and exchanged Instrument of Ratification of the Bilateral Investment Treaty (BIT) between the Government of the Republic of India and the Government of the Kyrgyz Republic, in New Delhi, today. The Bilateral Investment Treaty (BIT) signed on 14th June, 2019, in Bishkek, between the Government of the Republic of India and the Government of the Kyrgyz Republic, enters into force with effect from today, i.e. 5th June 2025. This new BIT replaces the earlier agreement enforced on 12th May 2000, ensuring continuity in the protection of investments between the two nations.
