The Institute of Chartered Accountants of India said on Sunday that insolvency and bankruptcy code (IBC) reforms are being worked on for 2016 and an IBC 2.0 is expected to be introduced soon. The board of auditors said IBC 2.0 could include a comprehensive framework for individual bankruptcies, prepackaged bankruptcies for larger companies, a framework for group bankruptcies and the use of technology in IBCs.

During a presentation on IBC on Sunday, ICAI said: “The Department of Corporate Affairs is looking for IBC 2.0 and is working very hard on it. The Insolvency and Bankruptcy Board of India (IBBI) and ICAI are working together on and supporting the Ministry of Corporate Affairs. We expect to see IBC 2.0 in some time, which will certainly ease the issues surrounding the bankruptcy resolution process.”

“ICAI has been actively involved in the Insolvency Committee, chaired by the MCA Secretary and other stakeholders. IBC 2.0 will be largely based on the discussion paper issued by the government. It depends on the government, but I expect it to happen very soon,” said Aniket S. Talati, ICAI President.

“A comprehensive framework for insolvency of individuals is expected to be implemented soon. Going forward, the government is planning a ready-made bankruptcy resolution process, or PPIRP framework, which is likely to be extended to larger companies as well,” ICAI said during a presentation on IBC at a hostel meeting in Agra on Sunday.

“In addition, the group insolvency framework can also be implemented in the medium term as planned by the government. Additionally, MCA and IBBI are exploring the use of technology in the IBC ecosystem to handle multiple processes in accordance with the Code with minimal human interface. ” it added.