Sarfaesi Act may be amended

Sarfaesi Act may be amended

  • ARCs cannot infuse equity in an insolvent company at the resolution stage. This has brought inturn a conflict between Insolvency and Bankruptcy Code (IBC)Rand Sarfaesi Act on whether an ARC can bid for bankrupt firms or not.
  • Hence there are proposals to amend the Sarfaesi Act suitably so that ARCs can also act as RAs (Resolution Applicants).
  • Here is an interesting article on the above which relates to UVARCL and Aircel deals.
Article on Sarfaesi Act
**Source: Economic Times dt 4th Nov 2020

Author: Admin Bankedge

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