Finance Minister Nirmala Sitharaman on Thursday introduced a bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code. The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 was approved by the Union Cabinet on Wednesday.
The amendments in the law seek to remove bottlenecks and streamline the corporate insolvency resolution process, wherein successful bidders will be ring fenced from any risk of criminal proceedings for offences committed by previous promoters of companies concerned.
The Insolvency and Bankruptcy Code, which came into force in 2016, has already been amended thrice.
The latest changes pertain to various sections as well as introduction of a new section.