> I'm referring the the domestic investors (including India's banks) who make the original investments.
The govt introduced this law so that the NPA's can be recovered at least partially by the banks, so that the tax payer is hit less. Previously, because of the legal loopholes the companies/NPA's used to drag the liquidation process and paying off in the courts. This law brings a very powerful rule to complete everything in 6 mons.
The banks will recover some of these, reinject money into the credit system so that more deserving can get loans.
The changes in the law are definitely welcome in that regard. My concern is that Indian banks will squander the advantage by indulging in unnecessary distress sales.
The govt introduced this law so that the NPA's can be recovered at least partially by the banks, so that the tax payer is hit less. Previously, because of the legal loopholes the companies/NPA's used to drag the liquidation process and paying off in the courts. This law brings a very powerful rule to complete everything in 6 mons.
The banks will recover some of these, reinject money into the credit system so that more deserving can get loans.