A parliamentary committee has been appointed to review the Insolvency and Bankruptcy Code (IBC) has recommended rebuilding the present system, including a threshold rate of haircut for creditors below. It has also advised a new supervisory body to oversee resolution professionals and said that only high court judges should be appointed to the National Company Law Tribunal (NCLT) to ensure fast disposal of cases.

The 29 member committee managed by the former minister of state for finance Jayant Sinha and former PM Manmohan Singh said that low recovery rates are 95 per cent and 71 per cent of the cases are pending. The committee stated opinions about fresh graduates being appointed as resolution professionals (RPs). It pointed out that regulatory action has been taken in 123 out of the 203 cases by the Insolvency and Bankruptcy Board of India (IBBI). It has been recommended that instead of having multiple insolvency professional agencies (IPAs), a single body should be formed to oversee and regulate RPs. The committee has also suggested a professional code of conduct for the committee of creditors (CoC) to approve a resolution plan and set some guidelines for the appointment of RPs to ensure transparency in the CoC.