It's now tougher for owners to recapture bankrupt companies

CURBING BACK-DOOR ENTRY

- MANU KAUSHIK

THE GOVERNMENT HAS notified changes in the insolvency regulations requiring every resolution plan submitted by potential bidders to include details of their beneficial owners who are ultimately going to take control of the distressed company post its transfer.

The move has come more than a month after the Insolvency and Bankruptcy Board of India (IBBI) floated a discussion paper on this issue. Based on the feedback, the board has decided to amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.