Govt move to clear IBC amendments to expedite resolution of NPA cases: Ficci
New Delhi: The government's decision to approve an ordinance entailing amendments to the Insolvency and Bankruptcy Code will expedite resolution of a large number of cases pertaining to non-performing assets, Ficci said on Thursday.
Enabling MSME promoters to bid for their companies under the IBC resolution process will help in speedy resolution in a large number of cases," said Rashesh Shah, President, Ficci.
"Easing of the norms for genuine promoters to take part in the resolution process associated with their company will act as a catalyst in the government and RBI's efforts towards stressed asset resolution, he added.
The cabinet on Wednesday cleared amendments to the Insolvency and Bankruptcy Code (IBC), incorporating changes suggested by a government-appointed panel.
A 14-member Insolvency Law Committee had made suggestions to the Ministry of Corporate Affairs, including addressing woes of home buyers and making recoveries easier for lenders.
However, Minister for Law and Justice Ravi Shankar Prasad, after the Cabinet meet had said, "I cannot disclose anything because it's a new legislation except to reinforce that the cabinet has approved it".