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IBC

IBBI and SEBI sign MoU for Implementation of IBC

  • The Insolvency and Bankruptcy Board of India (IBBI) has signed an MoU with the Securities and Exchange Board of India (SEBI).

The MoU provides for:

  • Sharing of information between the two parties.
  • Periodic meetings to discuss matters of mutual interest, including regulatory requirements that impact each party’s responsibilities, enforcement cases, research and data analysis, information technology and data sharing, or any other matter that the parties believe would be of interest to each other in fulfilling their respective statutory obligations;
  • Capacity building of insolvency professionals and financial creditors;
  • Joint efforts towards enhancing the level of awareness among financial creditors about the importance and necessity of swift insolvency resolution process of various types of borrowers in distress under the provisions of the Code, etc.

Bankruptcy

  • Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors.

Insolvency and Bankruptcy Code 2016

  • The 2016 Code applies to companies and individuals.
  • It provides for a time-bound process to resolve insolvency.
  • When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency within a 180-day period.
  • To ensure an uninterrupted resolution process, the Code also provides immunity to debtors from resolution claims of creditors during this period.
  • The Code also consolidates provisions of the current legislative framework to form a common forum for debtors and creditors of all classes to resolve insolvency.

IBBI (The Insolvency and Bankruptcy Board of India)

  • IBBI is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India.
  • It covers Individuals, Companies, Limited Liability Partnerships and Partnership firms.
  • It handles the cases using two tribunals like NCLT (National company law tribunal) and Debt recovery tribunal.

https://www.iasipstnpsc.in/upsc-insolvency-and-bankruptcy-code/

https://economictimes.indiatimes.com/markets/stocks/news/sebi-ibbi-sign-mou-for-better-implementation-of-ibc/articleshow/68484422.cms

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