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Jun 27, 2024 · Amendment to Liquidation Process Regulations: The IBBI notified the IBBI (Liquidation Process) (Amendment) Regulations, 2024 to, inter alia, provide for seeking approval of the Stakeholder Consultation Committee (SCC) for reduction in reserve price and private sale of assets.
Dec 21, 2017 · The enactment of the Insolvency and Bankruptcy Code, 2016 and the announcement of the recapitalisation plan for the public sector banks are likely to have far-reaching implications for the banking sector. Both will likely contribute to a stronger and more resilient banking sector in India. I. Introduction.
Jan 11, 2024 · The amendments to the Banking Regulation Act, 1949 carried out in 2017 inserted a clause that authorised the Reserve Bank to issue directions to any bank to initiate corporate insolvency resolution process (CIRP) in respect of a default, under the provisions of the IBC.
Feb 13, 2018 · MUMBAI: The Reserve Bank of India has scrapped numerous loan restructuring programmes prevalent among banks to restructure defaulted loans and made resolution of defaults time bound with the Insolvency and Bankruptcy Code becoming the main tool to deal with defaulters.
- The Second 2020 Amendment
- The 2021 Amendment Ordinance
- Key Regulatory Changes
- Other Changes Related to The Pandemic
- Trendsetting Judicial Developments
- Group Insolvency
- Cross-Border Insolvency
Like governments in many other countries, the Indian government brought about changes to mitigate the effects of the pandemic on corporations. On 5 June 2020, it promulgated the Insolvency and Bankruptcy (Amendment) Ordinance 2020 (the Suspension Ordinance).The Suspension Ordinance suspended section 7 (initiation of insolvency resolution by a finan...
On 4 April 2021, the government promulgated the Insolvency and Bankruptcy (Amendment) Ordinance 2021 (the 2021 Ordinance), which introduced the pre-packaged insolvency resolution process (PPIRP) for micro, small and medium-sized enterprises (MSMEs) as defined under the Micro, Small and Medium Enterprises Development Act 2006. This amendment was fel...
While the IBC contemplates the insolvency and bankruptcy regime for individuals, it has not been fully notified as yet. The same was notified in a limited manner with effect from 1 December 2019, insofar as it applies to personal guarantors of corporate debtors. The notification of those provisions was challenged as being unconstitutional on the ba...
On 6 August 2020, the RBI issued a circularallowing companies a one-time restructuring (OTR) of loans without classifying them as non-performing assets. This mechanism had been applicable for all commercial banks, cooperative banks, All India Financial Institutions and non-banking financial companies. The accounts that were eligible for an OTR were...
The COC’s control of corporate debtors and their decision-making upon commencement of the CIRP is the cornerstone of the IBC. The NCLAT’s decision in Essar Steelattempted to curtail the powers of the COC by circumscribing it with considerations of equity between different classes of creditors. The NCLAT’s decision was challenged and reversed by the...
The IBC contemplates insolvency of companies on a stand-alone basis. Companies, by default, even if they are part of a larger conglomerate, are viewed as separate legal entities for the purposes of initiating insolvency proceedings against them. In isolated cases, AAs have ordered the clubbing of insolvency proceedings of group companies for the pu...
The Report of the Working Group on Cross-Border Insolvency noted that the existing provisions in the IBC (sections 234 and 235) do not provide a comprehensive framework for cross-border insolvency matters.The proposal to provide a comprehensive framework for this purpose based on the UNCITRAL Model Law on Cross-Border Insolvency 1997 has been pendi...
Oct 12, 2022 · In a major move that could increase the number of bidders for assets under the Insolvency and Bankruptcy Code and recovery amounts, the Reserve Bank of India has allowed asset reconstruction companies to act as resolution applicant under the IBC, though with certain conditions.
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Oct 4, 2021 · India's central bank said on Monday it will initiate bankruptcy proceedings against Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd, and superseded the non-banking financial companies' boards on governance concerns and defaults.
