Corporate Updates – 17-08-2017


SEBI has notified the SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2017. SEBI exempts open offer obligations for acquisitions pursuant to resolution plans approved under Bankruptcy Code. In a major relief to banks and other lenders holding stressed assets, market regulator SEBI relaxed norms for a stake purchased in distressed listed companies by lenders, exempting them from making open offers for shareholders. The relaxation will be subject to certain conditions, including shareholders’ approval of the stake acquisition by way of special resolution. SEBI eased the norms for restructuring in stressed companies that are listed on exchanges as well as resolution plans approved under the Insolvency and Bankruptcy Code. The move could lead to a turnaround of listed companies in distress which will benefit their shareholders and lenders. Currently, relaxations from preferential issue requirements and open offer obligations are available for lenders undertaking restructuring of distressed listed companies under the Strategic Debt Restructuring (SDR) scheme. Relaxations will be subject to a lock-in of their shareholding for a minimum three years.


IBBI has notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations,2017 which shall come into force on the date of their publication in the Official Gazette. A new provision has been inserted and Form F has been inserted for Submission of Claims by Creditors other than Financial Creditors and Operational Creditors of the Corporate Debtor under Corporate Insolvency Resolution Process. The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 provide for Forms for submission of claims by operational creditors (including workmen and employees), and financial creditors. There could be claims from a creditor who is not a financial creditor or an operational creditor and it needs a specific form for submitting its claim.

News from NIRC of ICSI

NIRC of ICSI is organising Two Days Workshop on "MOCK NCLT PROCEEDINGS" (Including Moot Court & Session on Case Laws) on Saturday & Sunday, the 19th & 20th August, 2017 from 10.00 a.m. to 5.00 p.m. at ICSI-NIRC Building, 4, Prasad Nagar Institutional Area, New Delhi-110005. Fee : Rs.800/- per delegate who deposit their fee by 18th August, 2017. Rs.1000/- per delegate who deposit their fee on 19th August, 2017 subject to availability of seats. The fee may also be paid through Paytm. PROGRAM CREDIT HOURS: 08

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