tag:blogger.com,1999:blog-19649274.post3506249236773578283..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: The Indian bankruptcy reform: The state of the art, 2017Ajay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19649274.post-30386106706927353792017-10-04T12:57:47.299+05:302017-10-04T12:57:47.299+05:30The delay in implementation of the "requireme...The delay in implementation of the "requirement to inform exchanges about default" - seems to be a regressive step. It may provide some comfort to banks, in terms of delaying the acknowledgement of the problem. However, it is negative from the point of view of transparency - the very essence of well-functioning capital and financial markets.<br /><br />http://economictimes.indiatimes.com/markets/stocks/news/loan-default-listed-cos-get-a-breather-from-sebi/articleshow/60891314.cms<br /><br />Pawan Bindalhttp://www.dnb.co.innoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-9548187616518798442017-07-23T11:38:24.603+05:302017-07-23T11:38:24.603+05:30In my view, It should have been built into the law...In my view, It should have been built into the law i.e in case of inadequate coverage of insurance to cover the risks & potential liabilities ( coc will be deciding forum for assessing ) , then liability will fall upon creditors. This would have ensured discipline in choosing the right IPs with requisite resources, skills, infrastructure, competencies supported by insurance or capital .<br />Sadly this is missing .<br />This leads to irresponsible behaviour on the part of market players / stakeholders in bankruptcy process. The pricing of IP services so far is reflection that neither the IPs in their zeal to earn fee nor the creditors have recognised inherent risks in insolvency transactions( because it suits them not to as costs will fall upon them). Till somebody fails , it will continue to be like that . We could have designed it differently to reduce the possibility of such type of failures. This would have given confidence in the process . <br /><br />All i am saying is stringent rules on stakeholders, would have helped in bringing sanity from the very begining given that we all know and agree of potential risks and liablities are substantial for an IP<br />Or other way to handle it was , that capital adequacy should have been imposed on IPs.Anonymoushttps://www.blogger.com/profile/11037000588860877365noreply@blogger.com