IBC review likely to keep promoters out

CEAI

The government will examine the Insolvency and Bankruptcy Code (IBC) to stop defaulting promoters from wresting back control of companies by exploiting apparent loopholes. This follows developments in two high-profile cases – Siva Industries and Holdings Ltd and Dewan Housing Finance Corp. Ltd (DHFL NSE 0.56 %).

The government is likely to conduct its review in consultation with the Insolvency and Bankruptcy Board of India (IBBI), said a senior government official. It’s looking at Sections 12A, which provides for withdrawing IBC cases if 90% lenders agree, and 29A, which bars defaulting promoters and related

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