Experts, however, point out that the norms need to be detailed a little more to ensure innocent promoters with no malafide intent are not affected
Certain amendments suggested are targeted specifically to eliminate conflict of interest, according to legal experts.
The regulations proposed for Special Situations Funds (SSF) may finally stop promoters from round tripping funds through Alternative Investment Funds (AIFs), to regain control of companies that are in the insolvency process. When a company enters the Corporate Insolvency Resolution Process (CIRP), its control goes to the insolvency resolution professional (IRP). To get around that, promoters were found to be investing through AIFs, to have some say in the running of the…
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