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Value Destruction and Wealth Transfer Under the Insolvency and Bankruptcy Code, 2016

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  • Pratik Datta

Abstract

This article applies theoretical concepts from the law and economics literature on insolvency to identify the sources of these two problems in insolvency law. It then applies these theoretical concepts to the Insolvency and Bankruptcy Code, 2016 to identify two potential sources of the value destruction problem and four potential sources of the wealth transfer problem in the law. Indian policymakers need to revisit some of the fundamental legislative design choices embedded within the Insolvency and Bankruptcy Code, 2016 to successfully address these very sources of the value destruction and wealth transfer problems.

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  • Pratik Datta, 2019. "Value Destruction and Wealth Transfer Under the Insolvency and Bankruptcy Code, 2016," Working Papers id:12965, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12965
    Note: Institutional Papers
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    References listed on IDEAS

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    1. Bailey, Rishab & Parsheera, Smriti & Rehman, Faiza & Sane, Renuka, 2018. "Disclosures in privacy policies: Does "notice and consent" work?," Working Papers 18/246, National Institute of Public Finance and Policy.
    2. Rajeswari Sengupta & Anjali Sharma & Susan Thomas, 2016. "Evolution of the insolvency framework for non-financial firms in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2016-018, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Kaur, Amandeep & Chakraborty, Lekha, 2018. "UDAY Power Debt in Retrospect and Prospects: Analyzing the Efficiency Parameters," Working Papers 18/244, National Institute of Public Finance and Policy.
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