IBBI Current Affairs - 2019
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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.
The Insolvency and Bankruptcy Board of India (IBBI) has signed a cooperation agreement with the International Finance Corporation (IFC) to assist IBBI in further building the capacity of insolvency professionals and insolvency professional agencies for the purpose of the bankruptcy code.
IBBI established under the Insolvency and Bankruptcy Code, 2016 provides a platform for re-organisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of the value of assets, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
IBBI exercises regulatory oversight over the insolvency professionals, insolvency professional agencies and information utilities. Under the Insolvency and Bankruptcy Code, 2016 IBBI prescribes and enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy.
IFC would assist IBBI in the effective implementation of the Code and its allied rules and regulations by assisting in further building the capacity of insolvency professionals and insolvency professional agencies for the purpose of the bankruptcy code.
Tags: corporate insolvency resolution • corporate liquidation • IBBI • IFC • individual bankruptcy • individual insolvency resolution • Insolvency and Bankruptcy Board of India • Insolvency and Bankruptcy Code 2016 • International Finance Corporation