Defence
The Insolvency and Bankruptcy Board of India (IBBI) was established on:
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Answer: Option D — 1 October 2016
Detailed Solution
The Insolvency and Bankruptcy Board of India (IBBI) was established on 1 October 2016 under the Insolvency and Bankruptcy Code, 2016.
About the IBBI:
- It is the regulator for the insolvency and bankruptcy process in India.
- Its headquarters is in New Delhi.
- It has a Chairperson and members from the Ministry of Finance, the Ministry of Corporate Affairs, the Ministry of Law and the Reserve Bank of India.
- It works under the Ministry of Corporate Affairs.
Its functions:
- It regulates "insolvency professionals" (IPs), "insolvency professional agencies" and "information utilities".
- It makes regulations for the corporate insolvency resolution process (CIRP), liquidation and voluntary liquidation.
- It promotes the development of the insolvency profession.
About the Insolvency and Bankruptcy Code (IBC), 2016:
It was passed by Parliament in May 2016 and received the President's assent on 28 May 2016.
It was based on the recommendations of the "Bankruptcy Law Reforms Committee" headed by T. K. Viswanathan.
It created a single, unified law for insolvency of companies, partnership firms and individuals, replacing many older and overlapping laws.
It provides for a time-bound resolution of insolvency: 180 days, extendable by 90 days, with an outer limit of 330 days including litigation.
When a company fails to repay its debts, creditors (financial or operational) can apply to the National Company Law Tribunal (NCLT) to start the insolvency process.
A "Committee of Creditors" (CoC) decides on the resolution plan.
Appeals go to the National Company Law Appellate Tribunal (NCLAT) and then to the Supreme Court.
A "pre-packaged insolvency resolution process" for MSMEs was introduced in 2021.
Impact:
- It shifted control from the "debtor in possession" to the "creditor in control".
- It has helped banks recover large bad loans (non-performing assets) and improved credit discipline.
Related bodies:
- National Company Law Tribunal (NCLT): set up on 1 June 2016 under the Companies Act, 2013.
- Securities Appellate Tribunal (SAT): hears appeals against SEBI.
Why not the other options?
- ✗1 April 2015 is not related to the IBBI.
- ✗1 July 2017 is when GST was introduced.
- ✗28 May 2016 is when the IBC received the President's assent.
Quick tip
Remember: IBBI = 1 October 2016 (under the Insolvency and Bankruptcy Code 2016; Ministry of Corporate Affairs; New Delhi); IBC = 180 + 90 days, max 330 days; NCLT = 2016; GST = 1 July 2017.
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Financial Markets & Institutions — Preparation
This question tests your understanding of Financial Markets & Institutions, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers India's financial institutions and markets: regulators such as SEBI, IRDAI and PFRDA, development banks such as NABARD, SIDBI and EXIM Bank, the money market and capital market, stock exchanges and indices, insurance, and microfinance and self-help groups. Questions usually ask what each regulator oversees, where institutions are headquartered, and what market terms mean (bull and bear markets, IPO, Sensex and Nifty). For example, NABARD supports agriculture and rural development, SIDBI supports small industries, and SEBI regulates the securities market. Practise the financial markets and institutions questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.