- The Insolvency and Bankruptcy Board of India (IBBI) has constituted a 11-member working group under the Chairmanship of former SEBI chief UK Sinha to look into the concept of ‘Group Insolvency’ and suggest a suitable framework.
- The main purpose of ‘Group Insolvency’ is to recommend a complete regulatory framework to facilitate insolvency resolution and liquidation of debtors in a corporate group within the Insolvency and Bankruptcy Code (IBC).
- Presently, the IBC provides resolution or liquidation of only individual stressed companies. So a framework within the IBC is sought to be created for the resolution/liquidation of an entire stressed corporate group having several entities in multiple NCLT jurisdictions.
- The working group, with seven members and four invitees, will submit its report in two months of its formation.
