IBC1 min read
Fraudulent Trading
An offence under Section 66(1) of IBC where business of a corporate debtor is carried on with intent to defraud creditors or for any fraudulent purpose. Officers involved can be held personally liable by NCLT.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Fraudulent Trading in Indian corporate law?▼
An offence under Section 66(1) of IBC where business of a corporate debtor is carried on with intent to defraud creditors or for any fraudulent purpose. Officers involved can be held personally liable by NCLT.
Q2. Why is Fraudulent Trading important for compliance?▼
Fraudulent Trading is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Fraudulent Trading?▼
Fraudulent Trading is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.
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