The Insolvency and Bankruptcy Code 2.0 explained

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Hello, folks. You're listening to Finshots Daily, and in today's episode, we oversimplify the new amendments to the Insolvency and Bankruptcy Code, that is IBC. But just a small heads-up, this might be a little longer podcast than the normal ones. Also, before we head to the story, here's a quick side note from Team Ditto. This weekend, we're hosting a free two-day insurance masterclass that helps you build real financial security by understanding health and life insurance the right way. You can save your spot for free by heading to the link in the description and saving your spot. All right, let's now head to today's story. Before 2016, India's insolvency system was a bit of a nightmare. There were multiple laws dealing with bankruptcy. Personal insolvency was governed by two old laws: the Presidency Towns Insolvency Act of 1909 for cities like Mumbai, Chennai and Kolkata, and the Provincial Insolvency Act of 1920 for the rest of India. These explained how individuals could be declared insolvent and how their assets would be handled. But they didn't apply to companies. For companies, there was SARFAESI, or Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest, which allowed banks to seize assets without court involvement, or the Companies Act and the Sick Industrial Companies Act, SICA, which dealt with corporate insolvency. But the problem was that firstly, these laws were