India, March 31 -- The Lok Sabha on Monday passed a bill to amend the insolvency law to provide for strict timelines, an out-of-court settlement option and enable the framework for cross-border insolvency processes.

Piloting the bill in the Lok Sabha, Finance and Corporate Affairs Minister Nirmala Sitharaman said that 12 amendments are being made in the Insolvency and Bankruptcy Code (IBC), which came into force in 2016, that would help maximise the value for stakeholders and improve the governing process itself.

Amendments seek to strengthen the existing insolvency framework, as well as address practical challenges, and incorporate evolving global best practices, the minister said, and added that the law has been a major factor in impr...