New norms to prevent surrogate bids in insolvency
pre-market1 source ↓written by the desknot a recommendation
The Insolvency and Bankruptcy Board of India (IBBI) has proposed new regulations to enhance transparency in the corporate insolvency resolution process (CIRP). Bidders will now need to disclose beneficial ownership when applying to acquire insolvent firms, aiming to prevent debt burden manipulation by promoters using proxies. This move seeks to ensure that assets do not revert to delinquent promoters under complex structures.
Not investment advice. For informational purposes only.