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Business News/ News / India/  To help small companies, threshold limit for defaults under IBC raised to 1 cr
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To help small companies, threshold limit for defaults under IBC raised to ₹1 cr

If situation continues beyond April, govt to consider suspending Sections of IBC for six months to stop companies from being forced into insolvency, says FM Sitharaman

FM Nirmala Sitharaman (Photo: PTI)Premium
FM Nirmala Sitharaman (Photo: PTI)

New Delhi: To help small companies facing the threat of defaults due to coronavirus-related lockdown, the government on Tuesday raised the threshold that would trigger insolvency proceedings to 1 crore from current 1 lakh. This raising of the threshold will help small and medium enterprises, Finance Minister Nirmala Sitharaman said.

Also, the government will consider suspending Sections 7, 9, 10 of the Insolvency and Bankruptcy Code (IBC) for six months if the current economic situation continues beyond April, she said, adding this would help companies being forced into insolvency on default of loans.

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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Updated: 24 Mar 2020, 03:24 PM IST
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