NEW DELHI: In a teach to give relief to corporations defaulting on loans resulting from the Covid -19 stress, Finance Minister Nirmala Sitharaman on Sunday stated no novel insolvency shall be initiated for one year below the Insolvency and Financial catastrophe Code (IBC).
Additionally, coronavirus-connected debt shall be excluded from definition of default, she stated. Minimum threshold to initiative insolvency proceeding has been raised to Rs 1 crore from Rs 1 lakh to profit MSMEs, she stated including that an Ordinance shall be promulgated to carry this commerce in IBC.
The minister additionally announced decriminalisation of the Corporations Act in violations animated minor technical and procedural defaults including shortcoming in CSR reporting, inadequacies in board chronicle, filing defaults and delay in maintaining AGM.
Majority of the compoundable offences sections shall be shifted to interior adjudication mechanism (IAM), the minister stated including that amendments shall be brought through an Ordinance and will de-clog the prison courts and NCLT.
Seven compoundable offences below the Corporations Act altogether dropped and five to be dealt with below different framework, the finance minister stated.
Additionally, the authorities allowed corporations to straight list securities in permissible international jurisdictions.
Non-public corporations, which list non-convertible debentures on stock exchanges, would now not to be regarded as listed corporations, the minister added.
In Video: Public sectors starting up to non-public gamers, authorities to cease in key areas: Sitharaman