More MSME entrepreneurs have committed suicide as compared to farmers in India: FISME
Lucknow, May 13 (KNN) The condition of MSME entrepreneurs is no different than the farmers engaged in commercial crops, said Anil Bhardwaj, Secretary Bhardwaj, FISME, highlighting that as per a study report more MSME entrepreneurs have committed suicide as compared to farmers in India.
A roundtable of MSME representatives, professionals who assists MSMEs in their business activities/ CAs and bankers engaged in MSME financing was organized in the city in Friday.
The event was organized by Insolvency and Bankruptcy Board of India (IBBI), SIPI - an independent think on insolvency, INSOL India - the leadership body of insolvency stakeholders, FISME and Indian Industries Association (IIA).
The discussions were held to obtain their views, feedback and suggestions on the draft regulations on Fast Track Resolution under the Insolvency and Bankruptcy Code of India.
Suman Saxena, who was the whole time member IBBI was the Chief Guest for the roundtable meet, said, “It is easy to set up a business than to exit the same in case of its failure and therefore here is a great need for an easy exit route option to be made available for the sick units.”
Saxena presented her views on the Fast Track Insolvency Resolution Process such as the class on which the fast track will be applicable, various issues in the regulations, the timelines provided in the Corporate Insolvency Resolution Process and the resolution process under Fast Track Corporate Insolvency.
She also invited comments and suggestions on the code so that the same may be kept in mind and be incorporated while finalising the regulation.
Anil Bhardwaj said that in MSME sector failure is a norm but success is rare.
“The condition of MSME entrepreneurs is no different than the farmers engaged in commercial crops. In fact as per a study report more MSME entrepreneurs have committed suicide as compared to farmers in India. In India, the debate and discussion on insolvency is on for several decades. In 1988, when NAYE (the parental body of IIA and FISME) organised Udyami Mahasammelan in Lucknow wherein we raised the issue for early decision for the rehabilitation and exit of MSMEs. Even after about 20 years, we are still discussing the same,” he said.
Sanjeev Pandey, Deputy General Manager, Insolvency and Bankruptcy Board of India, highlighted the facts and the process of taking relief under The Insolvency and Bankruptcy Code.
He said that all the previous laws related to sick units such as SICA, SARFAESI etc have been transformed into a single self-sufficient legislation so as to provide an ease to the sick units.
All the good ideas from the British Insolvency Law have been extracted with the basic objective to make the company survive and opt for resolution rather than dissolution, he added. (KNN Bureau)
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