Indian industry bodies are stepping up measures to prevent owners of bankrupt diamond companies from starting a new business before clearing their debts.
The countryís Trade Disciplinary Committee (TDC) could ban such new firms from carrying out business on the premises of member organizations, it said in a notice December 21.
That would effectively prevent them from operating within the Bharat Diamond Bourse (BDB) in Mumbai, as well as any locations run by the Gem & Jewellery Export Promotion Council (GJEPC) and the Mumbai Diamond Merchantsí Association (MDMA). The restriction would remain in effect for two years after the bankruptcy or insolvency is settled, the three groups said in the joint statement.
The BDB, the GJEPC and the MDMA recently established the committee to help prevent unethical behavior and handle disputes between members of the organizations.
Image: Bharat Diamond Bourse