New Delhi, Dec 28 (IANS): A bill was introduced in the Lok Sabha on Thursday seeking to amend the Insolvency and Bankruptcy Code (IBC) to plug potential loopholes and prohibit "certain persons", such as wilful defaulters, from submitting resolution plans to let them take charge of the company.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2017 was introduced by Finance Minister Arun Jaitley.

It sought to replace an ordinance promulgated earlier.

The IBC, being implemented by the Corporate Affairs Ministry, became operational in December 2016 and provides for a time-bound insolvency resolution process.

The changes proposed are expected to help streamline the process of selecting buyers for stressed assets.

For instance, currently the Code does not specify the type of buyers who can bid for stressed assets of companies that are undergoing bankruptcy proceedings.

The bill sought to facilitate phased implementation of the provisions of the code to incorporate persons, individuals and partnership firms.

It also sought to provide clarity as to the persons who could submit a resolution plan in response to an invitation made by the resolution professional.

Certain people prohibited from submitting the resolution plan include wilful defaulters, disqualified directors, promoters or management of the defaulting company or any person who has committed these activities abroad.