How lenders have become the real stakeholders

India's corporate landscape

- By Akshat Khetan

In the evolving corporate ecosystem of India, stringent laws like the Insolvency and Bankruptcy Code (IBC) have reshaped the balance of power. Today, an increasing number of businesses grapple with a legal framework that favours lender control once a company experiences financial distress.

This trend underscores the importance of re-evaluating our approach to corporate default, offering breathing room for genuine businesses to recover, while maintaining strict scrutiny on wilful and fraudulent defaulters.

Today, lenders—both institutional and private—play a decisive role in a company's destiny. The framework grants creditors extensive power in determining the future of distressed companies, often sidelining the interests of shareholders.