Parliament on Thursday passed amendments to the insolvency law that will help safeguard successful bidders of insolvent companies from the risk of criminal proceedings for offences committed by previous promoters. The Insolvency and Bankruptcy Code (Amendment) Bill, 2020 was passed by voice vote in Rajya Sabha. It was approved by Lok Sabha on March 6. The Bill replaces an ordinance. Replying to a short debate on the bill, Finance Minister Nirmala Sitharaman said amendments are in sync with the time and also adhere to a Supreme Court order in "letter and spirit". The bill seeks to remove bottlenecks and streamline the corporate insolvency resolution process. It aims to provide protection to new owners of a loan defaulter company against prosecution for misdeeds of previous owners. Thelatest changes pertain to various sections of the IBC as well as theintroduction of a new section.

Anchor: Frank Rausan Pereira

Guest: Chakshu Roy, Head of Outreach, PRS Legislative Research,
AK Bhattacharya, Editorial Director, Business Standard,
Dr. Subhash Chandra Pandey, Financial Adviser, Ministry of Commerce and Industry

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