IBBI and SEBI sign pact for Effective Implementation of IBC
Insolvency and Bankruptcy Board of India (IBBI) and Securities and Exchange Board of India (SEBI) have signed a Memorandum of Understanding (MoU) to assist and co-operate with each other for the effective implementation of the Insolvency and Bankruptcy Code.
Components of the MoU
- Sharing of information between the two parties.
- Sharing of resources available with each other to the extent feasible and legally permissible.
- 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.
- Cross-training of staff in order to enhance each party’s understanding of the other’s mission for effective utilisation of collective resources.
- 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.
Insolvency and Bankruptcy Code
The Insolvency and Bankruptcy Code provides for a time-bound process to resolve insolvency and it creates various institutions to facilitate resolution of insolvency. Insolvency and Bankruptcy Code consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
Category: Economy & Banking Current Affairs