New Liquidation Procedures for Troubled Firms in India to be Released

The Indian government has announced plans to formulate an exit scheme that will make it easier for troubled companies to go through the liquidation process.

The mechanism is scheduled to be ready in less than a year and will serve as a special purpose vehicle (SPV) that will allow authorities to centrally gather and access data to cut procedural delays. The liquidation process for a company in India can be a tedious task taking up to 10 years to finish following current rules. This only serves to further devalue company assets and hampers efforts to re-channel remaining assets back to the economy.

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