IBC committee wants wider pool of bidders for insolvent companies

The panel also exempted 'pure play financial entities' from the scope of Section 29 (A)

A high-level panel on reviewing the Insolvency and Bankruptcy Code (IBC) has suggested widening the pool of those who can bid for insolvent companies. 

Earlier, the government had inserted Section 29 (A) to the Code, debarring related parties and connected persons of defaulting entities from bidding for a company. 

In a report, submitted to the government last week but put in the public domain on Tuesday, the committee recommended narrowing down the list of debarred entities to only those closely related to defaulting promoters.  

The committee said debarring those remotely related to defaulting promoters might shrink the pool of resolution applicants. 

So, now