In order to help smaller companies the government is reviewing the insolvency provisions, including recent amendments barring defaulting promoters from bidding for their own assets undergoing insolvency.
The committee, formed in November and chaired by the secretary, ministry of corporate affairs, and includes members involved in the drafting of the IBC, has already met to discuss the issue, sources told Moneycontrol.
Lawyers, corporates, bankers and other experts have pointed out that the new clause does not distinguish between ordinary and wilful defaulters.
The prohibition of promoters will reduce the bids coming in especially for the smaller and medium sector enterprises (SMEs). We have been told that a committee is…
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