What is the primary aim of the Insolvency and Bankruptcy Code (IBC), 2016?

Correct Answer: To provide a time-bound mechanism for resolving insolvency

Subject: economics

• To regulate stock market investments
• To provide a time-bound mechanism for resolving insolvency
• To bail out banks from financial distress
• To provide collateral-free loans to startups

Explanation: • <b>Key Fact</b> The IBC, 2016 was enacted to provide a time-bound and efficient mechanism for resolving insolvency and bankruptcy. • <b>Supporting Detail</b> It applies to cases of companies, partnership firms, and individuals who cannot repay debt. • <b>Related Concept</b> The standard time-bound resolution process is 180 days, extendable to 330 days. • <b>Why wrong options are wrong</b> It does not regulate the stock market or bail out banks directly. • <b>Exam Trick</b> IBC is strictly related to "time-bound recovery" to improve the ease of doing business. • <b>Additional Info</b> The Insolvency and Bankruptcy Board of India (IBBI) is the regulator, and NCLT adjudicates corporate insolvency.

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