The amended Insolvency and Bankruptcy Code may weed out the majority of promoters from bidding on assets undergoing court proceedings and could also deepen losses for banks.
President Ram Nath Kovind gave his assent to an ordinance amending the Insolvency and Bankruptcy Code (IBC) on Thursday, barring errant promoters.
While lawyers and bankers welcomed the move saying that the objective is a strong signal to corporate defaulters, most have also expressed concerns over the criteria of promoters being barred as it could eliminate potential investors and could reduce the number of revival proposals that may come up.
Majority promoters disqualified?
Jyoti Singh, Insolvency and Disputes Partner…