Parliament approves changes in IBC to protect COVID-stressed firms from insolvency

By: |
September 21, 2020 10:35 PM

Finance Minister Nirmala Sitharaman said the amendments would provide relief to companies reeling under the impact of the coronavirus pandemic.

The emerging world order will evince more intense geopolitical competition and tension amongst great powers—most notably between the US and ChinaThe emerging world order will evince more intense geopolitical competition and tension amongst great powers—most notably between the US and China

Parliament on Monday approved the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, whereby fresh insolvency proceedings will not be initiated for at least six months starting from March 25 in view of the coronavirus pandemic.

Replying to a debate on the bill in the Lok Sabha, Finance Minister Nirmala Sitharaman said the amendments would provide relief to companies reeling under the impact of the coronavirus pandemic.

The bill seeking to replace the Ordinance was later approved by the Lok Sabha. The Rajya Sabha has already approved in the bill on Saturday.

The bill mandates that a default on repayments from March 25, the day when a nationwide lockdown began to curb the spread of coronavirus, would not be considered for initiating insolvency proceedings for at least six months.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1BOSCH HAEMOGLOBIN MONITOR: Now AI helps determine haemoglobin levels
2Eavesdropper: A signal for others
3Save the internet