• The Corporate Affairs Secretary on Tuesday said that the personal insolvency regime is expected to be fully operational in a year.
• The Insolvency and Bankruptancy Code (IBC) which came into force in 2016, which provides personal insolvency, but the provision is still not operational.
• “There are several new challenges we need to address as we move on. The first among these challenges is personal insovency. We have not yet commenced personal insolvency. It is a very large subject because it will bring in every type of borrower in its ambit. Srinivas said at a function to mark the third aniversary of the Insolvency and Bankruptancy Board of India (IBBI) here.
• The corporate affairs ministry will be implementing the personal insolvency regime in phases. “In the first phase, personal guarantor to a corporate debtor is almost under commencement. The second phase would  be a fresh start process,that  is giving relief to very small borrowers who are not in a position to repay the debt, which will be commenced in another four to six months. Then proprietorship and partnership and others” said Srinivas.
• According to him, an year’s time will be required for the personal insolvency to be fully operational and Debt Recovery Tribunals (DRTs) will be the main institutions for it.
• Srinivas  also extended in his speech that for entities having small exposures, for them, and adjudicatory process is been worked out.....which will be fully online system and also based on verification....whether it is about assets they (borrowers) have or their monthly  personal insolvency to be income.
• Srinivas also expressed confidence that cross border insolvency regime-based on the UNCITRAL model-would be enacted in the upcoming winter session of parliament. On home buyers, Srinivas also stated that a threshold would be introduced for home buyers to fasten the IBC process for real estate developer.This will ensure that no single home buyer can misuse the provisions for taking the real estate developer to the NCLT.
• Group insolvency would also be addressed by looking at the international best practices, he said.
• He also said that the government is keen on developing a market place for stressed assets, which will ensure maximum competition and participation of foreign players.The move will also ensure these assets get maximum value and stressed companies get the best people to revive and run them, Srinivas added.

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