The MSME industry, colloquially referred to as the power engine of the economy has been a focal point of several reforms over the years. The recent reforms w.r.t. MSMEs and the Insolvency and Bankruptcy Code, 2016 (“Code’) has altered the stance of MSMEs, both as creditors and debtors. In this article, we shall discuss some significant reforms/ amendments w.r.t. MSMEs (due to COVID, or otherwise), and those under the Code and analyse the cumulative impact of these reforms on the sector in the prevailing scenario
-Sikha Bansal & Megha Mittal
The past year has seen several reforms and amendments in the insolvency framework, be it enforcement of provisions for individual insolvency, or inclusion of FSPs under the insolvency regime. Additionally, Committees have been actively working on two extremely relevant aspects which presently the Code does not provide for- Group Insolvency and Cross Border Insolvency.
In our presentation (link given below) we have tried to collate the recent amendments and the workings of the Committee reports so as to provide a one-stop reference for reforms as on Mar’20- see here
Updated as on 1st July, 2020