Welcome to INSOL India Newsletter Volume 9, Issue March | Apr 09, 2018

Greetings and a warm welcome to all INSOL India members and friends. As we step into a new financial year, our commitment towards developing the discipline of Insolvency grows stronger.
                     
Undoubtedly, knowledge sharing between insolvency professionals and streamlining the insolvency resolution process are the two pillars on which the future of insolvency rests in India. This edition of the newsletter has updates on the progress made in this direction. Insolvency and Bankruptcy Board of India (IBBI) has signed an MoU with the Reserve Bank of India (RBI) for effective implementation of the IBC and its allied rules and regulations. This will go a long way in overcoming regulatory bottlenecks in the implementation of the code and achieving the best results for the key stakeholders - lenders.
 
IBBI is also in the process of revising the syllabus of Limited Insolvency Examination and is currently seeking inputs from the industry on the same.  This will lead to better screening process for selection of Insolvency professionals and ensure higher quality of execution during CIRP
 
Another key development is regarding market regulator Securities and Exchange Board of India (SEBI) which recently approved the proposal of undertaking a public consultation process as a part of reviewing the requirements of compliance with various SEBI Regulations by listed entities which are subject to CIRP under the IBC 2016.  Various issues flagged in the discussion paper include aspects relating to disclosures, trading in stock exchanges, material related party transactions, re-classification of promoters, compliance with minimum public shareholding requirement and delisting pursuant to resolution plan/ liquidation. 
 
In this edition, we have featured a critical analysis of the NCLT order in the case of Roofit Industries. This expert analysis covers the intricacies of the case with insights on how the code can be interpreted with respect to sale of all or part of the assets of a company under CIRP.

As always, please keep sharing your valuable feedback with us.  
 

Greetings!

It is a matter of great pleasure to welcome you to yet another issue of the newsletter.

Ever since the Insolvency and Bankruptcy Code came into being, insolvency jurisprudence has definitely taken a new turn. Many important questions arose, and continue to arise. Involvement of stakeholders is becoming more meaningful in as much as the Board (IBBI) has sought inputs to develop a better syllabus for Limited Insolvency Examination. This would result in increased competency of the professionals, ultimately leading to higher quality of execution.

Of course, there cannot be a single dose remedy to handle insolvency or bankruptcy, which is an outcome of a chronic pattern of commercial or business behaviour. The roots of the cause spread to many territories. When we begin to treat insolvency with a progressive outlook, the Code should become handy, so as to have a faster resolution with a regenerative outlook and/or output.

With the passage of time, the Code will evolve or say, will have to evolve, tackling and treating arrays of situations thitherto unknown. An example is the understanding arrived at between the Board and the Reserve Bank. So is the question whether a resolution plan can provide for acquisition of one or select units of the corporate debtor.

The thematic work becomes meaningful to the extent it is pragmatic and effective. Our deliberations have to flow with this in sight. Mountains of paper work or rhetoric with no focus and result will take our schemes nowhere. Principles and procedures have to be uniformly smart, hand in hand. And this cannot be achieved overnight. This will be a regular process.

It will be interesting to watch the developments. I am sure much is in store.