The definition of relatives would be added to the IBC alongside that of related party under Section 5(24) of the IBC.The government is set to define the term relatives in the context of persons considered related parties who will be ineligible to bid for stressed assets under the Insolvency and Bankruptcy Code (IBC), sources told FE. Analysts said any such move could make the disqualification of family members of defaulting promoters more explicit, and will likely impact cases like Essar Steel in which Rewant Ruia, son of the companys co-promoter Ravi Ruia, is said to be one of the beneficiaries, and owners of a shareholder of Numetal that has bid for the stressed steel firm.
While IBC has already defined related party of…
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