Resale curbs likely in toxic asset auctions

Govt recently issued an ordinance to debar wilful defaulters, those with one year or more NPA, from bidding

The government is in discussions as to whether it should put in reasonable restrictions for a limited period of time on the successful bidder of a distressed asset so that it cannot transfer or sell the shares of the company back to its promoters or their related parties, holding companies, subsidiaries and associate companies.  

This, most experts say, is essential in order to plug any loopholes after a recent ordinance by the government has virtually ruled out promoters from bidding for their own distressed assets if these have become a non-performing asset for banks for more than one year. Questions