New Delhi, April 27 -- India's ministry of corporate affairs (MCA) is considering the establishment of an oversight body to monitor the functioning of Committees of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC). This follows a code of conduct for CoC operations implemented in August 2024, prompted by the Delhi high court's call for improved accountability.

The CoC, which steers the corporate debtor through the insolvency process, mainly comprises financial creditors (FCs)-primarily commercial banks-that hold the majority of claims. Operational creditors (OCs) are included only if their claims account for at least 10% of the total, a rarity. The latter typically play a limited role in negotiations. FCs hold considerable p...