New Delhi, Apr 8 (PTI) 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.

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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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)