New Delhi, May 12 -- Stronger penalties on major shareholders and directors of bankrupt companies for failure to cooperate in debt resolution could make corporate turnaround efforts more efficient, according to Institute of Chartered Accountants of India (ICAI).

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A system of advance ruling on bankruptcy-related laws similar to that existing for income tax would also help, it said in recommendations to the government after studying the working of Insolvency and Bankruptcy Code (IBC).

It said a dedicated IBC mediation and arbitration centre, expanding the scope of the existing informal debt resolution framework for micro, small and medium businesses and a s...