Economics • Indian EconomyMedium
What is the primary mandate of the 'Insolvency and Bankruptcy Board of India (IBBI)' established under the Insolvency and Bankruptcy Code, 2016?
A. To regulate insolvency professionals, insolvency professional agencies, and information utilities, overseeing corporate and individual resolution processes.✓ Correct Answer
B. To act as the supreme adjudicating authority replacing debt recovery tribunals.
C. To purchase non-performing assets from commercial banks and manage asset restructuring.
D. To provide direct financial bailouts to distressed public sector undertakings.
💡 Solution & Explanation
The Insolvency and Bankruptcy Board of India was established under the Insolvency and Bankruptcy Code of 2016 to regulate professionals, agencies, and utilities engaged in corporate and individual resolution proceedings. It does not replace debt recovery tribunals or buy non-performing assets like an asset reconstruction company. This regulatory body ensures transparency and institutional oversight across the entire corporate insolvency framework in the country.
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