Wrongful Transactions: IBBI tightens fraudulent transaction norms to boost insolvency transparency
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Wrongful Transactions

IBBI tightens fraudulent transaction norms to boost insolvency transparency

In its fifth amendment to the Insolvency Resolution Process for Corporate Persons Regulations, 2016, the Insolvency and Bankruptcy Board of India has tightened fraudulent transaction norms, mandating stricter disclosure of "avoidance transactions" in resolution plans, the regulatory body said in a gazette notification. It has also barred post-facto inclusion of such wrongful transactions in resolution plans unless previously disclosed, the notification said.

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