Schedule a Call Back
Easing norms for MSMEs in IBC to speedy up resolution: Rashesh Shah
Industry News- Jun 01,18
According to FICCI President, while keeping errant promoters out of the bidding process for their companies is critical, it is also equally important to give a fair chance to the genuine promoters
New Delhi
The Union Cabinet's decision to issue an Ordinance to make necessary changes in the Insolvency and Bankruptcy Code (IBC) for easing the norms for participation of the promoters of the companies in the resolution of their stressed assets, especially Micro, Small and medium Enterprises (MSMEs), will expedite resolution of NPA cases in a big way.
"Enabling MSME promoters to bid for their companies under the IBC resolution process will help in speedy resolution in a large number of cases. 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. While there is a need to keep the errant promoters out of the bidding process for their companies under IBC is a necessity, it is also equally important to give a fair chance to the genuine promoters to be part of the resolution process," said Rashesh Shah, President, FICCI.
Additionally, according to him, the decision to treat homebuyers on par with financial creditors will also prove to be a substantial relief for a large section of the society, and will also give a boost to the real-estate sector.
Shah added highlighted that higher bids placed for the stressed assets under the IBC process show that it has already started working, and Tata Steel's acquisition of Bhushan Steel is a clear indication of the potential of the IBC framework in the resolution of the NPA cases.
Related Stories
Automation & Robotics
MSMEs: Backbone or Bottleneck?
Finance remains the most pressing of these challenges. As noted by the Lok Sabha Standing Committee on Finance, India’s MSMEs face a staggering credit gap of Rs 20–25 trillion.
Read morePolicy Regulation
We see 40-50% growth in all our key businesses: Ram Iyer
In this interaction, Ram Iyer, Founder and CEO, Vayana, elaborates on challenges faced by MSMEs in accessing finance and probable solutions to ease their situation.
Read moreElectrical & Electronics
Saatvik Green begins construction for new solar manufacturing plant in Odisha
The facility is being developed on land sub-leased from Tata Steel Special Economic Zone Limited (TSSEZL)
Read moreRelated Products
Water Soluble Cutting Oil
Waxes, Oils and Solvents
Rustx-Hi Tech International offers water soluble cutting oil.
Rust Preventive Oils
Waxes, Oils and Solvents
Transasia Petrochem Pvt Ltd are highly engaged in offering rust preventive oils in the market.
Industrial Gear Oil
Waxes, Oils and Solvents
Venlub Petro Products (P) Ltd offers gear oil are extreme pressure type industrial gear lubricants.
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
