Insolvency Bill eases rules for SME promoters

The Bill could help SMEs, as promoters who have filed resolution plan can pay up dues to regain company

A Bill to replace an ordinance amending the Insolvency and Bankruptcy Code offers promoters of small and medium enterprises (SMEs) undergoing insolvency proceedings a month's window to repay overdue loans. and bid for their companies. This will be applicable where these promoters are sole bidders.

The Bill, introduced in the Lok Sabha on Thursday, also seeks to give some relief to promoters in general, by tweaking the definition of one year of non-performing assets (NPAs), on the basis of which they are disqualified to bid for their companies.

It also excludes asset reconstruction companies, alternative investment funds and banks from