Highlights of proposed Insolvency and Bankruptcy Code

New Delhi, Dec 21: Highlights of the bill for an Insolvency and Bankruptcy Code that was introduced in the Lok Sabha, the lower house of parliament, by Finance Minister Arun Jaitley on Monday: - Consolidates into a single law a host of legislations that deal with the subject; - Aims to speedily adjudicate such cases for higher recovery of debt and money; - Allows operational creditors like employees to also call for insolvency resolution; - Proposes Insolvency Regulator to exercise regulatory oversight over insolvency professionals, insolvency professional agencies and informational utilities; - Moots two separate Insolvency Adjudicators -- one with jurisdiction over companies and the other over insolvency and bankruptcy resolution of individuals; - Proposes to regulate insolvency professionals and insolvency professional agencies, under regulator's oversight; - Proposes fast-tracking resolution of insolvency cases and improve recoveries of amount lent to companies within a timeline of 180 days, extendable by another 90 days; - Proposes insolvency resolution process for individuals where the creditors and the debtor will engage in negotiations to arrive at an agreeable repayment plan of debts; - Moots "Fresh Start" process for indigent individuals with income and assets lesser than specified thresholds; and - Proposes insolvency information utilities which would collate, authenticate and disseminate financial information from listed companies and creditors of companies.