manner: SahooBy Manoj RammohanNew Delhi, Dec 25 (PTI) Steering the "smooth and fast-paced" journey of the insolvency law, the IBBI is now lookingto put in place the regime for individual insolvency in aphased manner, according to its Chairperson M S Sahoo.
Around 500 corporates have been admitted for resolutionand about 100 companies have commenced voluntary liquidationunder the Insolvency and Bankruptcy Code (IBC), which is alittle over a year old.
As it enters 2018, individual insolvency regime andfacilitation of corporate insolvency transactions are amongthe main priorities for the Insolvency and Bankruptcy Board ofIndia (IBBI).
"We are looking forward to implementing a regime forindividual insolvency in a phased manner. In the first phase,we would implement the insolvency regime in respect ofindividuals who are guarantors to corporates undergoingresolution process," Sahoo said.
This would be followed by the regime for individuals whoare doing business -- proprietorship or partnership firms.
While emphasising that the journey of the IBC has been"smooth, fast-paced and focused," Sahoo said all theconstituents under this Code are on the same page and thatregulations are being amended to meet the emerging exigencies.
"A very tentative estimate of the total underlyingdefault amount which formed the basis for initiation ofresolution of about 500 corporate debtors is about Rs 1.3 lakhcrore," the chairperson told PTI in an interview.
He also made it clear that this figure is neither thetotal default nor total claim related to these 500 companies.
The IBBI came up in October 2016 and the first corporatedebtor was admitted for resolution in January this year. Acase is taken up for resolution only after approval from theNational Company Law Tribunal (NCLT).
A significant number of lenders have initiated insolvencyproceedings against various companies with regard to stressedassets while proceedings have also been started against realtyfirms and others.
Another priority for the IBBI is to facilitate corporateinsolvency transactions.
"Many resolution and liquidation transactions will maturein the next few months and those may throw up some lessons anddeficiencies in the regulatory framework. We would addressthem expeditiously," Sahoo noted.
According to him, the NCLT, the NCLAT (National CompanyLaw Appellate Tribunal) and the judiciary are at the forefrontof the insolvency law reform.
"They have settled several contentious issuesexpeditiously and delivered many landmark orders, bringing inclarity as what is permissible and what is not, andstreamlining the process for future," he said.
When it comes to the institutional infrastructure, thereare 12 benches of the NCLT, the IBBI, three InsolvencyProfessional Agencies (IPAs), 1,300 Insolvency Professionals(IPs), 50 Insolvency Professional Entities (IPEs) and 1Information Utility.
"We would focus on building capacity of IPs and keep aclose watch on their conduct. We would facilitateoperationalisation of Information Utilities so that authenticinformation is available to the adjudicating authority andinsolvency professionals to complete the transactionsexpeditiously," Sahoo said.
Asserting that the environment is conducive for the Code,the IBBI chairman said there is a helping hand fromeverywhere, including the RBI, SEBI and the government.
"SEBI has exempted resolution plans from the requirementof public offer under the Takeover Code, preferentialallotment from pricing norms, etc.
"RBI has allowed information utilities and InsolvencyProfessionals (IPs) to access the information from creditinformation companies. It has recently advised all itsregulated financial creditors to immediately put in placeappropriate systems and procedures to ensure compliance withthe provisions of the Code and regulations," he said.
Further, he noted that the government has clarified thatno approval of shareholders is required for any action to betaken for implementation of an approved resolution plan. PTIRAMABM.
This is unedited, unformatted feed from the Press Trust of India wire.