The key highlights of the amendment are:
1. A person not eligible to submit a resolution plan shall not be a party in any manner to a compromise or arrangement of the corporate debtor
2. Secured creditor cannot sell or transfer an asset, which is subject to the security interest to any above-said person
3. The liquidator shall deposit the amount of unclaimed dividends, undistributed proceeds, if any, into the Corporate Liquidation Account before he submits an application for dissolution of the corporate debtor and maintain register thereof
Source: Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016
Effective date: January 6, 2020