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The Economic Times

Economy / The Economic Times

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IBC study calls for auction reform to boost MSME insolvency resolution

A new study suggests changes to how bankrupt micro, small, and medium enterprises are rescued. It proposes a single objective auction model to award bidders offering the highest recovery. The study also advocates for a priority rule for distributing funds, recognising financial creditors' security interests.

8 Apr 2026 12:45 am