News Details- (Get Professional Updates on Whatsapp, Msg on
8285393786) More
News
Govt finalising special insolvency resolution under IBC for MSMEs
PrintThe Ministry of Corporate Affairs (MCA) is finalising a special insolvency resolution under section 240A of the Insolvency and Bankruptcy Code (IBC), 2016.
"The Ministry of Corporate Affairs is finalising a special insolvency resolution under section 240A of the Code, to provide relief to the MSMEs and the same would be notified soon," a statement released by the Ministry said.
The statement released after Finance Minister Nirmala Sitharaman reviewed progress of the Atmanirbhar Abhiyaan so far, also stated that the threshold of default under Section 4 of the IBC has been raised to Rs 1 crore from existing Rs 1 lakh.
"In exercise of powers conferred under Section 4 of the IBC, 2016 (31 of 2016), the central government hereby specified Rs 1 crore as the minimum amount of default for the purposes of the said section vide Notification dated June 24, 2020," it read.
Further as per Sitharaman's statement while announcing financial relief during the coronavirus pandemic, the IBC (Amendment) Ordinance, 2020 has been promulgated on June 5, 2020 thereby provided for insertion of Section 10A in the Code to temporarily suspend initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7, 9 and 10 of the Code for a period of six months or such further period, not exceeding one year from such date.
Besides this, the Rs 30,000 crore Special Liquidity Scheme for non-banking financial companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs) has been launched after Cabinet approval.
"RBI has also issued a circular to NBFCs and HFCs on July 1, 2020 itself on the Scheme. SBICAP has received 24 applications requesting about Rs. 9,875 crore of financing as on July 7, 2020 which are being processed. The first application in this regard has received its approval and the remaining are also being considered," it said. #casansaar (Source - MoneyControl)
"The Ministry of Corporate Affairs is finalising a special insolvency resolution under section 240A of the Code, to provide relief to the MSMEs and the same would be notified soon," a statement released by the Ministry said.
The statement released after Finance Minister Nirmala Sitharaman reviewed progress of the Atmanirbhar Abhiyaan so far, also stated that the threshold of default under Section 4 of the IBC has been raised to Rs 1 crore from existing Rs 1 lakh.
"In exercise of powers conferred under Section 4 of the IBC, 2016 (31 of 2016), the central government hereby specified Rs 1 crore as the minimum amount of default for the purposes of the said section vide Notification dated June 24, 2020," it read.
Further as per Sitharaman's statement while announcing financial relief during the coronavirus pandemic, the IBC (Amendment) Ordinance, 2020 has been promulgated on June 5, 2020 thereby provided for insertion of Section 10A in the Code to temporarily suspend initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7, 9 and 10 of the Code for a period of six months or such further period, not exceeding one year from such date.
Besides this, the Rs 30,000 crore Special Liquidity Scheme for non-banking financial companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs) has been launched after Cabinet approval.
"RBI has also issued a circular to NBFCs and HFCs on July 1, 2020 itself on the Scheme. SBICAP has received 24 applications requesting about Rs. 9,875 crore of financing as on July 7, 2020 which are being processed. The first application in this regard has received its approval and the remaining are also being considered," it said. #casansaar (Source - MoneyControl)
Category : MSME | Comments : 0 | Hits : 290
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
Search News
News By Categories More Categories
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Comments