Promoters have the right to submit bids for group companies which are under stressed assets resolution process under Insolvency & Bankruptcy Code (IBC), according to Rajnish Kumar, chairman, State Bank of India (SBI). When asked if it is ethical for promoters to buy their group companies which are under the resolution process, he said, "I don't know if there is an ethical issue in this. Kumar's statement assumes importance as bankers and other experts have expressed concerns over such action by promoters of defaulting companies. Some bankers also feel that through this process the same promoters could be regaining control of the companies they drove to losses. Bankers feel that if the same promoters enjoy the haircuts and other benefits of the resolution process then it defeats the purpose of the process.

Source: dna November 07, 2017 02:03 UTC