Study on IBC moots specialised SPVs to manage cos with dues above INR 10 bln
This story was originally published at 19:38 IST on 8 April 2026
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NEW DELHI – A research study conducted by the Management Development Institute, Gurgaon Wednesday suggested that a specialised company or a special purpose vehicle should take care of the functioning of the debt-ridden company's business, including managing the daily operations as well as functional areas such as finance and human resources, if admitted dues were more than INR 10 billion. These special purpose vehicles should be responsible for the supervision and asset management of the firm, the study suggested.
Insolvency professional entities may be appointed over individual insolvency professionals as resolution professionals in the companies with admitted claims of over INR 10 billion, keeping in view the case technicalities, said the study. They shall oversee the corporate insolvency resolution process and ensure compliance with the Insolvency and Bankruptcy Code, 2016, it said.
The study recommended strengthening the insolvency ecosystem and enhancing the role of insolvency professionals, which act as resolution professionals of debt-ridden companies. It proposed expanding eligibility to include professionals with managerial and financial expertise. The study also recommended introducing a case-based examination system for insolvency professionals, similar to those in the US and the UK.
To safeguard the integrity of the process, the report suggested that insolvency professionals found guilty of fraudulent conduct should be removed from all assignments, including ongoing cases. Further, the report recommended that resolution professionals should provide a performance guarantee after their appointment and ensure the arm's length appointment of valuers through an open and fair process. End
Reported by Surya Tripathi
Edited by Tanima Banerjee
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