Debt for Equity swaps can be used as a tool not only for 230-231 of Companies Act, 2013 but for resolution plans formulated under Insolvency and Bankruptcy Code, 2016 - Present your views briefly.

Regulation 37 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 provides that a resolution plan shall provide for the measures for maximisation of value of assets. Thus, one of the best methods of corporate debt restructuring is debt-equity swap where specified shareholders shall have right to exchange stock for a predetermined amount of debt in the same company. In debt-equity swap debt/bonds are exchanged with shares/stock of the company. However, the resolution plan needs to be placed before Committee of Creditors for approval before the same is placed for sanction by the NCLT.