IBBI Sets Up ‘Group Insolvency’ Panel Under Former SEBI Chief UK Sinha

  • 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.

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