The bill allows defaulting promoters to be part of the debt resolution process subject to conditions. Photo: AFPNew Delhi: The Lok Sabha on Friday passed the Insolvency and Bankruptcy Code (Amendment) Bill 2017, paving the way for tightening loopholes in the existing code and making the resolution process more effective. A successful completion of the resolution process was expected to aid in reducing rising bad loans in the banking system. The bill has also sought to bring any individual who was in control of the NPA under the ambit of the insolvency code. It also allows guarantors of insolvent firms to bid for other firms under the insolvency process.

Source: Mint December 29, 2017 11:03 UTC