Govt issues draft norms for voluntary liquidation

New Delhi: Draft regulations have been prepared for voluntary liquidation that can be initiated by a corporate person who has not committed any default.

The norms have been prepared under the Insolvency and Bankruptcy Code.

Under the Code, the Insolvency and Bankruptcy Board of India (IBBI) is already in place.

"A corporate person who has not committed any default may initiate voluntary liquidation subject to certain conditions," an official release said today.

The draft regulations would be open for comments from the public till March 8.

So far, IBBI has notified the Insolvency Resolution Process for Corporate Persons and Liquidation Process regulations.

The Code seeks to consolidate and amend laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.