MUMBAI: The Securities and Exchange Board of India (Sebi) will soon issue guidelines for Insolvency Resolution Professionals (IRPs), said Ajay Tyagi, chairman, Sebi. The markets regulator is working with the Bankruptcy Code Board of India to finalise norms that will facilitate smoother functioning of IRPs and will be issued within this year.
“There are various other issues which have come to our notice in terms of resolution professionals being in-charge of a company for 180 days at least, when resolution plan is underway,” Tyagi said.
According to him, Sebi has already relaxed norms with regards to issue of capital and disclosure requirements and regulations on substantial acquisition of shares and takeovers to align with the new Bankruptcy & Insolvency Code.
“What would be the obligations on the resolution professionals under the listing regulations or what are the other requirements. They need to be jointly worked out with the Bankruptcy Code Board of India and provisions made on that,” he said adding that a prompt and transparent exit mechanism was equally important as entry into a business.
“This code is one of the most important reforms undertaken by the country in the recent times,” he said, adding all the issues related to insolvency would be resolved in a timely manner and would benefit all stakeholders and would go a long way in attracting more investments.