Question
Identify the correct statement about Insolvency and
Bankruptcy Code. 1. It became operational in 2015 2. It was constituted to provide better governance in banking sector 3. It is being implemented by Finance MinistrySolution
A Bankruptcy Law Reforms Committee was set up in 2014 for providing an entrepreneur friendly legal bankruptcy framework for meeting global standards for improving the ease of doing business with necessary judicial capacity. Accordingly, the Insolvency and Bankruptcy Code (IBC), 2016, became operational in 2016. The Code aims to promote entrepreneurship, availability of credit, and balance the interests of all the stakeholders by consolidating and amending the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals. It is being implemented by ministry of corporate affairs.
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