IBBI, SEBI sign MoU for better implementation of Insolvency CodeDate: 20 March 2019 Tags: Acquisitions and Merger
Insolvency and Bankruptcy Board of India (IBBI) has signed Memorandum of Understanding (MoU) with Securities and Exchange Board of India (SEBI) for effective implementation of Insolvency and Bankruptcy Code (IBC), 2016.
MoU provides for
- SEBI and IBBI will assist and co-operate with each other for effective implementation of IBC.
- They will share information and resources to the extent feasible and legally permissible.
- They will hold periodic meetings to discuss matters of mutual interest, including regulatory requirements that impact each party's responsibilities.
- They will also enforce cases, research and data analysis, information technology and data sharing for fulfilling their respective statutory obligations.
- SEBI and IBBI will undertake cross-training of staff to enhance each other’s understanding for effective utilisation of collective resources.
- They will seek to enhance capacity building of insolvency professionals and financial creditors.
- They will enhance level of awareness among financial creditors about importance and necessity of swift insolvency resolution process of various types of borrowers in distress under provisions of IBC 2016.
Insolvency and Bankruptcy Code (IBC), 2016
- It provides for reorganization, time-bound and market-determine insolvency resolution of individuals, corporate persons, partnership firms for maximization of value of assets.
- It consolidates various laws, rules and regulations concerning insolvency, bankruptcy and liquidation of non-financial entities, systematically and comprehensively.
- Under it, IBBI exercises regulatory oversight over Insolvency Professionals, Insolvency Professional Agencies and Information Utilities.
- It empowers IBBI to frame and enforce rules for processes such as, individual insolvency resolution, corporate insolvency resolution corporate liquidation and individual bankruptcy under Code.