Singapore can be rescuer of India's stressed assets

Singapore: Singapore, as an Asian economic hub, could potentially become a leading investor in India's stressed assets, especially in the financial sector, building on its strong investment-linked relationships, India's envoy here Jawed Ashraf said on Thursday.

Ashraf was addressing some 200 investors and business leaders at the conference on "India's Insolvency and Bankruptcy Code" (IBC) and long-term impact on India's stressed assets, which some estimates value it at $250 billion in the banking sector.

"A large part of Singapore's investment from Singapore's government linked funds and private equity funds in India has been in existing or mature assets, and we see a huge potential for investments in stressed assets, as many are viable companies that have had management issues that forced them into a situation that triggered process for resolution under the Insolvency and Bankruptcy Code," Ashraf said.

Highlighting the background, key provisions and the benefits of the IBC, the Indian High Commissioner said, "many of the assets would be available at attractive price and the process of resolution is very quick, averaging about 300 days per case". Ashraf believes that the Singapore eco-system will also be very supportive of opening an entirely new chapter and take the two countries' investment relations to a new level.

He assured that the IBC will continue to get improved, which will see the investment cycle picking up especially with the participation of the private sector. Sunil Sanghai, chairman of the National Committee on Capital Markets in the Federation of Indian Chambers of Commerce and Industry, said, "there is a proper and very structured regulatory framework which has been put in place which is not only helping assets to get restructured but also investors to take investment decision for participating in the stressed assets."