Business Today
Finance Minister Nirmala Sitharaman has clarified in the Rajya Sabha that Micro, Small and Medium Enterprises (MSMEs) are exempt from disqualification under key provisions of the Insolvency and Bankruptcy Code (IBC). The exemption under Sections 29A, 29AC, and 29AH allows existing promoters of MSMEs to participate in the resolution process. This ensures that small business owners do not lose control of their enterprises during insolvency proceedings. The move is aimed at protecting smaller businesses, enabling smoother resolution, and supporting continuity in the MSME sector—considered the backbone of India’s economy.
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