The Union Finance Ministry constituted four-member Insolvency and Bankruptcy Board of India (IBBI) with Financial markets expert MS Sahoo as its Chairman.
MS Sahoo was administered the oath of the office by Union Finance and Corporate Affairs Minister Arun Jaitley in New Delhi. He will have tenure of five years i.e. till 2021.
Prior to this appointment, he was serving as a member of anti-trust regulator Competition Commission of India (CCI). Earlier he also had served as member at capital markets regulator Securities and Exchange Board of India (SEBI). He also had served as Chairman of the government-appointed committees on depository receipts, domestic and overseas capital markets, and external commercial borrowing (ECBs).
Other members of IBBI: Ajay Tyagi (Additional Secretary, Union Finance Ministry) Amardeep Singh Bhatia (Joint Secretary, Union Ministry of Corporate Affairs), GS Yadav (Joint Secretary, Department of Legal Affairs) and Unnikrishnan (Legal Advisor of the Reserve Bank of India).
About Insolvency and Bankruptcy Board of India (IBBI)
- IBBI has been tasked to regulate functioning of insolvency professionals, insolvency professional agencies and information utilities under Insolvency and Bankruptcy Code 2016.
- The Code was notified by the Union Government in May 2016 replacing existing bankruptcy laws.
- It seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, individuals and partnership firms in a time-bound manner.
- Under this new law, employees, creditors and shareholders will have powers to initiate winding up process at first sign of financial stress such as serious default in repayment of bank loan.