President Ram Nath Kovind on Thursday approved the ordinance for amending the bankruptcy code, which will make it difficult for insolvent promoters to acquire stressed companies. Top sources in the government said that the ordinance makes it difficult for promoters trying to re-acquire their stressed companies, by putting stringent guidelines for an applicant to qualify. There could also be foreign investors, so how do we decide their qualification for acquiring stressed assets,” said insolvency expert Sumant Batra. “So there is the need to amend the law to ensure only deserving candidates are allowed to bid for stressed assets under the corporate resolution process,” said a second official. The code was strengthened on November 8 to streamline the due diligence process while choosing a buyer of stressed assets.

Source: Hindustan Times November 23, 2017 08:48 UTC