New Delhi, Aug. 14 -- Creditors to bankrupt firms could get their hands on a wider pool of valuable assets and claw back money from more shady promoter transactions, once latest changes to India's insolvency rules take effect.

While the Insolvency and Bankruptcy Code (IBC) remains the primary mode for bankruptcy resolution, lenders often seize assets of defaulting companies under various other laws; however, such assets stay with the individual banks themselves. The amended law will aid in bringing such assets-also seized from the defaulter's personal or corporate guarantors, essentially, its promoters, corporate parent, or an associate company-within the pool of assets for resolution.

Experts said this increases flexibility in rescuing...