Abstract

The Insolvency and Bankruptcy Code, 2016 (IBC) stands as a transformative legal framework in the Indian financial landscape, revolutionising the resolution of distressed assets. This article delves into the multifaceted dimensions of stressed assets within the ambit of the IBC, offering a comprehensive analysis of its significance, challenges, and opportunities. Beginning with an elucidation of stressed asset categories and their emergence factors, the discourse traverses through the historical evolution of the problem, shedding light on regulatory responses. Through a meticulous examination, the article uncovers the intricacies of legal and operational hurdles confronting the development of stressed asset markets juxtaposed with promising prospects for investors and creditors. Furthermore, it underscores the pivotal role of governmental interventions in mitigating challenges and fostering a conducive environment for effective asset resolution. With insights drawn from legal expertise and empirical observations, this article serves as a valuable resource for stakeholders navigating the dynamic terrain of distressed asset management under the IBC, ultimately contributing to a robust financial ecosystem in India.

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