Closure process to get shorter

The Union Budget 2022-23 has proposed to establish the Centre for Processing Accelerated Corporate Exit (C-PACE) for speedy winding-up of companies.

“Several information technology-based systems have been established for accelerated registration of new companies. Now the Centre for Processing Accelerated Corporate Exit (C-PACE), with process re-engineering, will be established to facilitate and speed up the voluntary winding-up of these companies from the currently required 2 years to less than 6 months,” Finance Minister Nirmala Sitharaman said in her speech.

The Budget has also proprosed to carry out necessary amendments in the Insolvency & Bankruptcy Code to enhance the efficacy of the resolution process and facilitate cross-border insolvency resolution.

The main aim of the Code is resolving corporate debtors in distress.

“Necessary amendments in the Code will be carried out to enhance the efficacy of the resolution process and facilitate cross-border insolvency resolution,” Ms. Sitharaman said.

(With PTI inputs)