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The Parliament has passed the Insolvency and Bankruptcy Code 2016, aimed at simplifying business in India through faster resolution of insolvency, quicker business turnaround, and tracking serial defaulters. The code repeals outdated laws and amends banking and industry-related laws. Challenges include ensuring the effective functioning of insolvency professional agencies and concerns about implementation. The law has received widespread political support but questions remain about its impact on non-performing assets worth lakhs of crores.