SEBI publishes Discussion Paper on Compliance with SEBI Regulations by Listed Entities Undergoing Corporate Insolvency Resolution Process under the IBC, 2016

Apr 06, 2018 | by Avantis RegTech Legal Research Team

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The Securities and Exchange Board of India (SEBI) has issued a Discussion Paper on March 28, 2018 to provide clarification on certain compliances with SEBI Regulation which are required to be complied by the listed entities when they are undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC), 2016.

The securities laws have cast several obligations on listed entities in the interest of investors. Keeping in view the interests of investors, the modified governance structure of the listed corporate debtor and the need for ensuring revival of the corporate debtor pursuant to resolution plan, there is a necessity of providing a suitable framework of compliance with securities laws by listed entities which are subject to Corporate Insolvency Resolution Process (CIRP).

In view of the circumstances pertaining to the listed corporate debtors, suitable clarifications/ amendments may be required under various SEBI Regulations to facilitate and ensure compliance with the securities laws. For the said purpose, the insolvency proceedings in respect of a listed corporate debt or may be divided into three distinct stages, which are:

·       Pre-CIRP stage, that is the period before the application for initiating CIRP is admitted by National Company Law Tribunal (NCLT);

·       CIRP stage, that is the period spanning from admission of application by NCLT till the time the resolution plan is approved by NCLT; and

·       Post-CIRP stage, which is the period when the resolution plan as approved by NCLT is being implemented.



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