IBBI: Changes in Voluntary Liquidation Timeframe

Current GK (RBI Ast) Others

10-Apr-22

The Insolvency and Bankruptcy Board of India (IBBI) has notified amendments to the regulations of the voluntary liquidation process, wherein the timelines including the distribution of proceeds from realization have been reduced so that a faster exit for firms can be ensured. From 5^th April 2022, these amended regulations have come into effect.

Overview:

There has been a substantial delay in the voluntary liquidation process completion.
To curtail such delay in the future and to ensure that the firms can exit faster, the recently amended regulations have provided modified timelines for certain stipulated activities that must be undertaken during the voluntary liquidation process.
Under the new amendments, the liquidator must transfer the proceeds of the realization to the stakeholders within 30 days after receiving the money. Previously, the time period for this was 6 months.

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