Financial creditors took lead in initiating insolvency proceedings in the fourth quarter.
Indian banks are struggling to resolve huge pile of bad loans or non-performing assets (NPAs) at over Rs 10 lakh crore, accounting for 11.6 percent of total loans.
The solution to the buying of stressed assets does not lie in allowing tainted persons to come in but a solution lies in creating a market to arrive at a resolution, according to MS Sahoo, Chairman of Insolvency and Bankruptcy Board of India.
The annual flow of funds through External Commercial Borrowing (ECB), which refers to commercial loans in foreign currencies, is around USD 30 billion. Companies use this mechanism to raise low cost funds from abroad.
Former SEBI whole-time member MS Sahoo explains to CNBC-TV18, that proposed revised consent guidelines will ensure transperancy and punish defaulters more effectively.