On the positive side, it is felt the amendments will warn errant promoters that they may lose control of their companies. If defaulting promoters offering higher values to retain control are kept out, rival bidders may quote lower valuation, causing banks to take higher haircuts. Alok Dhir, managing partner at Dhir & Dhir Associates, said though the main idea behind the ordinance was to keep out those who had diverted funds from bidding, some of the norms were harsh. "The amendments show that existing promoters can participate in the resolution, provided they bring the account back and make it standard," he said. SBI chairman Rajnish Kumar said the valuation of the stressed assets facing insolvency proceedings was unlikely to be impacted with the ordinance.

Source: The Telegraph November 23, 2017 19:52 UTC