The Parliament passed on Tuesday a bill to amend the Insolvency and Bankruptcy Code, 2016, prohibiting owners of defaulting firms from bidding for assets auctioned during bankruptcy proceedings.

The Insolvency and Bankruptcy Code (Amendment) Bill will replace an ordinance promulgated by President Ram Nath Kovind in November. The Lok Sabha had passed the bill last week.

Finance Minister Arun Jaitley said the government would continue to modify the law as it is “learning experience”. “Insolvency and bankruptcy is an area in which it is only in the recent years that we have chartered into,” he said.

The amendment also gives the Insolvency and Bankruptcy Board of India additional powers.

The code provides for an effective and robust legal framework to resolve insolvency cases and release non-performing assets quickly. The bill passed on Tuesday amends sections 2, 5, 30, 35 and 240 of the code and adds two new sections – 29A and 235A.