RBI chief Rajan calls for better bankruptcy laws

Reserve Bank of India (RBI) governor Raghuram Rajan on Wednesday said the country was in need of clearer procedures when companies go bankrupt and called for new rules to remedy the situation.

"We need a bankruptcy code. We need equity to be seen as equity and debt to be seen as debt. Today there`s a lot of confusion... We need that confusion to be changed," he said.

Rajan said the country`s economy was in a much better position to tackle external shocks than last year, when the rupee currency tumbled to a record low.

"Given our macro economic position, political situation ... I don`t think we are in same vulnerable position as last year," Rajan said at an event in Mumbai.