New Delhi, June 15 (KNN) Kick starting the process of developing insolvency and bankruptcy provisions for non-corporates and individuals having business, the Insolvency & Bankruptcy Board of India (IBBI) has formed a Working Group.

With ratification of the Insolvency and Bankruptcy (I&B) Code 2016, the rules for the corporate sector have been framed but not for the non-corporates and individuals having businesses.

The MSME sector in India, where 97% of entities are either proprietorships or partnership firms, have been eagerly awaiting action under the new comprehensive legislation. Even where MSMEs are registered under the Companies Act, because of issues of personal guarantees of the directors, the resolution needed to be through individual insolvency and bankruptcy regulation.  

The Working Group is to recommend Rules and Regulations under the I&B Code 2017 for both the individuals having businesses and with respect of Guarantors to Corporate Debtors.  

Secretary General of Federation of Indian Micro and Small & Medium Enterprises (FISME) Anil Bhardwaj is nominated as Member of the Group.

The Working Group will be chaired by Chairman of INSOL India, Amarjeet Singh Chandiok. The other members of the Group include CEO of MUDRA Jiji Mammen, CEO of SMERA Sankar Chakraborti, Chairperson IFMR Bindu Ananth besides representations from Ministry of Corporate Affairs, Institute of Chartered Accountants of India among others. (KNN Bureau)