INSUBCONTINENT EXCLUSIVE:
The Insolvency and Bankruptcy Code (IBC), 2016, has already been amended thrice till date
The Union cabinet, chaired by Prime Minister Narendra Modi on Wednesday cleared amendments to the Insolvency and
Bankruptcy Code (IBC) to ease the insolvency resolution process and promote ease of doing business
Aimed at streamlining of the insolvency resolution process, the IBC Amendment Bill seeks to protect last-mile funding and boost investment
in financially-distressed sectors, an official release said
The development comes at a time the government seeks to strengthen the country's financial sector marred by huge bad assets and bank
frauds to support economic growth
The IBC (Second Amendment) Bill, 2019 is likely to be introduced in the current session of the Parliament
Bankruptcy Code replaces laws such as the Sick Industrial Companies Act (SICA Act) and the Securitisation and Reconstruction of Financial
Assets and Enforcement of Securities Interest Act (SARFAESI Act), shifting the control of recovery process to creditors from borrowers.The
prevent frivolous triggering of corporate insolvency, in turn ensuring that bankruptcy is not invoked for small amounts.The amendment will
provisions allow the corporate debtor to continue as a going concern by clarifying that the licenses, permits, concessions and clearances
cannot be terminated or suspended during the moratorium period."Approval by the cabinet to provide immunity to successful bidders under IBC
is a positive and timely step and will increase confidence among prospective buyers of stressed assets."In a separate development, the
cabinet on the same day approved easier lending rules for non-banking financial companies to help them get more access to
known as shadow banks - have been key drivers of lending growth in India, with their consolidated balance sheet worth Rs 28.8 lakh crore
($400 billion) in 2018-19, based on central bank data.In the immediate future, the bill will provide a cushion to at least two high-profile
ArcelorMittal and JSW Steel are seeking to be ring-fenced from ongoing cases and immunity from future investigations before completing the
acquisition of Essar Steel and Bhushan Power - Steel.