Homebuyers as financial creditors; President okays amendments in IBC

Also, section 29 (A), inserted in the Code to debar defaulting promoters and related parties, would be relaxed for financial creditors who have acquired defaulting firms and MSMEs

An ordinance to amend the Insolvency and Bankruptcy Code (IBC) will be promulgated on Wednesday with President Ramnath Kovind giving assent to it. 

With this, home buyers would be given the status of financial creditors in a pie of assets of financial creditors.  

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Also, section 29 (A), inserted in the Code to debar defaulting promoters and related parties, would be relaxed for financial creditors who have acquired defaulting firms and medium and small enterprises. 

Earlier, section 29 (A) was