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India Panel Clears Insolvency Law, Sets Stage for Passage

  • Panel recommends law to seize overseas assets of defaulters
  • Bill makes it easier for banks to recover dues from defaulters
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An Indian parliamentary panel approved a bill aimed at overhauling century-old bankruptcy regulations, taking a key reform measure aimed at improving ease of doing business closer to implementation.

The panel, comprising members from the ruling as well as opposition parties, proposed that the Insolvency and Bankruptcy Code should include laws to seize overseas assets of defaulting companies and individuals. The legislation, which makes it easier to wind up a dying company or recover dues from a defaulter, could be passed in the current session of parliament that ends on May 13, Finance Minister Arun Jaitley said.