Current Affairs – June, 2018

Latest Current Affairs June, 2018 with Current Affairs, news summary on current events of National and International importance of June, 2018 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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Government releases draft on cross-border insolvency resolution

The Ministry of Corporate Affairs has released draft on cross-border insolvency in order to strengthen Insolvency and Bankruptcy Code (IBC). It will help banks access overseas assets of company undergoing resolution. Similarly, Indian authorities will also be required to cooperate with foreign creditors to domestic company.

Need

The existing IBC provides for two Sections –234 and 235 relating to cross border insolvency but these are not adequate to effectively deal with default cases of domestic corporate debtor having assets and operations outside India. In many of ongoing cases under IBC, several companies have assets and operations outside India, for which legal framework is required to deal assets overseas.

Existing provisions only allow Central government to enter into agreement with foreign country for enforcing provisions of Code. Second, the government can issue a letter of request to country outside India seeking information. The draft norms have now been issued to plug these loopholes and have any effective resolution mechanism in place for cross-border insolvency.

Key Facts

The draft on cross-border insolvency favours adoption of UNCITRAL (United Nations Commission on International Trade Laws) Model Law on Cross-Border Insolvency, 1997. Under it, central government after entering into agreement with other countries may bring overseas asset of domestic corporate debtor into consideration of insolvency resolution in India. Initially, cross border insolvency framework will apply only to corporate debtors, but later it will be extended to cases of personal insolvency resolution as well.

UNCITRAL Model Law on Cross-Border Insolvency, 1997

On global scale, this model law envisages balance between liquidation and reorganisation of global companies going in for resolution. It has emerged as most widely accepted legal framework to deal with cross-border insolvency issues while ensuring least intrusion into country’s domestic insolvency law. Due to growing prevalence of multinational insolvencies, the model law has been adopted by 44 States till date, including Singapore, UK, and US.

Month: Categories: Business, Economy & Banking

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India, US to hold inaugural 2+2 Dialogue in July 2018 in Washington. DC

The inaugural India, United States 2+2 Dialogue will be held on July 6, 2018 in Washington. DC, capital city of US. The dialogue will focus on strengthening strategic, security, and defence cooperation as both countries jointly confront global challenges. It is seen as a vehicle to elevate the strategic relationship between two countries.

Key Facts

In inaugural 2+2 Dialogue, US Secretary of State Michael R. Pompeo and Secretary of Defense James Mattis will host External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman. Under it, both countries are expected to share perspectives on strengthening their strategic and security ties and exchange views on range of bilateral, regional and global issues of mutual interest.

2+2 Dialogue

The new dialogue format was agreed to between two countries during visit of Prime Minister Narendra Modi to US in June, 2017. It will replace earlier India-US Strategic and Commercial Dialogue. It is similar to India-Japan 2+2 dialogue format between foreign and defence secretaries of the two countries.

The 2+2 Dialogue between US and India aims enhance strategic coordination between both countries and maintaining peace and stability in the Indo-Pacific region. It will put strategic, defence and security relationship between the two countries at the forefront and centre stage.

It will enhance strategic coordination between the two nations and also elevate strategic consultations between both countries. It will insulate India-US strategic relationship from feuds over trade issues and deep divide on economic integration policies as trade and commercial issues were discussed in Strategic and Commercial Dialogue earlier.

Month: Categories: National

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