India has paved the way to replace its archaic insolvency laws with a new bankruptcy code that would help the country’s banks as they struggle under billions of dollars of bad loans. The law could be confirmed as soon as this week.
On Thursday, the Lok Sabha, India’s lower house of parliament, passed the Insolvency and Banking Code, which will reduce the time it takes to wind up a company and speed up the process of recovering debts from firms that default.
Under the existing century-old laws, banks have had a hard time recovering bad debt, with the case of Kingfisher tycoon Vijay Mallya, who owes banks more than US$1.3 billion, bringing the issue into sharp focus.
The bankruptcy bill still needs to be approved by the upper house of parliament but it could go through this week, as long as the opposition does not try to derail the move.
“This would help to get a faster exit for firms,” says Abhimanyu Sofat, a co-founder of AdviseSure, an investment advisory company in India. “Closing a business is a big headache and takes a lot of time.”
Under the new law, there would be a deadline of 180 days following a default by a company and if no other resolution is reached, the company would be liquidated. There would also be jail sentences for those that try to cheat the system under the bankruptcy code.
It is expected to help in India’s rankings globally in terms of its ease of doing business, which is important as the country tries to attract more outside companies and foreign investment, he said.
“Right now one has to see what finally happens,” Mr Sofat says. “What gets passed by one house might not get passed by another. There is a lot of political turmoil happening in India. It’s good that they have started acting, though, and after the Vijay Mallya case there’s been a trigger in terms of doing something because clearly the public sector banks are in very bad shape. It is positive but the speed at which it happens will be very critical.”
It could take time for the law to actually become effective because India would need a body of lawyers and accountants trained to implement the system.
Munesh Khanna, a partner at PwC India and specialist in corporate finance and business restructuring, said that the bankruptcy code was much needed and he hoped to see it come into effect without any delays.
“The bankruptcy law is a comprehensive legislation and addresses almost all relevant issues,” he said. “The success of any legislation is dependent on execution and implementation. Towards this end, I would urge the government to ensure that the implementation for the framework of execution of the legislation is smooth and speedy.”
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Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Muguruza's singles career in stats
WTA titles 3
Prize money US$11,128,219 (Dh40,873,133.82)
Wins / losses 293 / 149
More coverage from the Future Forum
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
The specs
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
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The bio
His favourite book - 1984 by George Orwell
His favourite quote - 'If you think education is expensive, try ignorance' by Derek Bok, Former President of Harvard
Favourite place to travel to - Peloponnese, Southern Greece
Favourite movie - The Last Emperor
Favourite personality from history - Alexander the Great
Role Model - My father, Yiannis Davos
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
UAE currency: the story behind the money in your pockets
