The ministry of corporate affairs (MCA) is developing an early warning system (EWS) to identify companies at the risk of insolvency, a move that will facilitate preemptive action to avert industrial sickness.

The system, which will help detect defaults prior to their occurrence, will be designed in the form of a dashboard that will be accessible to both the creditors and regulators, said an official close to the development.

Even though the architecture of the new system is still being worked out, it will be a vast improvement on the current National E-Governance Services (NeSL), an information utility (IU) registered with Insolvency and Bankruptcy Board of India (IBBI), which has a similar mandate.

“The EWS would red-flag cases of discrepancies including irregularities in MCA filin

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