India Cracks Down on Bankrupt Diamond Traders

RAPAPORT... Indian industry bodies are stepping up measures to prevent owners of bankrupt diamondcompanies from starting a new business before clearing their debts. The country's TradeDisciplinary Committee (TDC) could ban such new firms fromcarrying out business on the premises of member organizations, it said in a notice December 21.That would effectivelyprevent them from operating within the Bharat Diamond Bourse (BDB) in Mumbai,as well as any locations run by the Gem & Jewellery Export PromotionCouncil (GJEPC) and the Mumbai Diamond Merchants' Association (MDMA). The restriction would remain in effect for two years after the bankruptcy or insolvencyis settled, the three groups said in the joint statement. The BDB, the GJEPCand the MDMA recently established the committee to help prevent unethical behavior and handle disputes between members of theorganizations. Image: Bharat Diamond Bourse. (Rapaport News)