New Delhi, Jan 3 (KNN) With the insolvency and bankruptcy bill tabled in the parliament earlier last week, following the discussion on the same, the Union Minister for Finance Arun Jaitley said that the government is looking to explore amending the insolvency law for the micro, small and medium enterprises (MSME) sector.

The hint came up during a discussion in Rajya Sabha wherein Jaitley said that the changes are required in order to make the bill comprehensive.

The government is looking at the application of the law for the MSMEs; a final call on the same will be taken once the committee sends forth the recommendation.

Also participating in the debate, former finance minister from the Congress Party, P. Chidambaram said that the different clauses that are proposed in the new bill would lead to Indian companies not participating in the resolution process.

Listing the concerns further, Chidambaram said that the danger it poses is that it might lead the company to bits and pieces with no bidder for the company.

Earlier, the bill was tabled in Lok Sabha to replace the existing ordinance.

Under the new tabled bill, the ministry has proposed to bar those with nonperforming accounts to acquire insolvent companies or their assets. Also the new bill attempt to explain and expand the provisions that were formulated in the earlier introduced ordinance. (With PIB Inputs) (KNN/DA)