Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

President approves bankruptcy code ordinance

Author: IANS/Thursday, November 23, 2017/Categories: Government

President approves bankruptcy code ordinance

New Delhi, Nov 23 - The ordinance to amend the insolvency and bankruptcy code that will bar defaulters from bidding for the stressed assets has got the President's approval.

President Ram Nath Kovind on November 23 signed the ordinance that was sent to him by the Union Cabinet on November 22. 

Breaking the news at a meeting of select editors, Finance Minister Arun Jaitley said: "The ordinance disentitles the big defaulters and makes it difficult for them to bid for distressed assets which was of their own making."

He said the ordinance does not ban them from bidding for the stressed assets but would make it difficult for them and disentitles them from doing it.

Giving an example he said: "You can't say my account is NPA (non performing asset) but I have to bid. This is ethically completely unacceptable to the Indian political system.

"I also have a political cost to pay. You can't be a stressed asset and you want to join the process for bidding." 

He said one solution could be that the NPA holder at least comes forward and services the interest by Rs 10 to Rs 15 -thousand crore in an asset of, say, Rs one lakh crore.

The Insolvency and Bankruptcy Code (IBC), being implemented by the Corporate Affairs Ministry, became operational in December 2016 and provides for a time-bound insolvency resolution process. 

The changes proposed are expected to help streamline the process of selecting buyers for stressed assets. 

 

Print Rate this article:
No rating

Number of views (117)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.