News from the desk of Insolvency and Bankruptcy Board of India (IBBI) and Ministry of Finance (MoF)
October 14, 2021
Insolvency and Bankruptcy Board of India (“IBBI”) has vide its Notification dated 30th day of September, 2021 amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2021 (“Regulations”).
The Notification has amended the (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“the principal regulations‟), in the following manner namely:-
| Regulation No. | Principal regulation | Amendment |
| 17 (1A) | Under regulation 17 which provides for constitution of a committee by the interim resolution professional and filing a report of the same before the Adjudicating Authority; | Sub-regulation (1A) has been inserted under regulation 17, which directs the Committee and its members to discharge functions and exercise powers under the Code and the principal regulations in respect of corporate insolvency resolution process in compliance with the guidelines as may be issued by the Board. |
| 36A (4A) | Regulation 36A provides for issuance of invitation for expression of interest by the insolvency resolution process; | Sub-regulation (4A) under Regulation 36A has been inserted which directs that modification may only be made in the manner as the initial invitation for expression of interest was made: However, no modification shall be made more than once. |
| 36B | Regulation 36B sub-regulation 5 deals with request for resolution plan and modification in the same; | A new proviso has been inserted which states that such modifications shall not be made more than once. |
| 39 (1A) | Regulation 36B provides for approval of resolution plan; previously consisted of sub-regulation (1A) that stated that a resolution plan which does not comply with the provisions of sub-regulation (1) shall be rejected.” |
The new sub-regulation are as follows:- (1A) The resolution professional may allow modification of the resolution plan received but not more than once; or use a challenge mechanism to enable resolution applicants to improve their plans. (1B) The committee shall not consider any resolution plan which is (a) received after the time as specified by the committee under regulation 36B; or (b) received from a person who does not appear in the final list of prospective resolution applicants; or (c) does not comply with the provisions of sub-section (2) of section 30 and sub-regulation (1). |
The said rules shall be effective from 30th day of September, 2021.
The complete text of the Regulations may be viewed at below link: https://www.ibbi.gov.in/uploads/legalframwork/57c7722e3ebb1364eac924f213111814.pdf
News from the desk of Ministry of Finance
Ministry of Finance (MoF) has vide its Notification dated 05th day of October, 2021 amended the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2021.
The amendment provides that 100% Foreign Direct Investment shall be permitted under Petroleum and Natural Gas in case an 'in-principle' approval for strategic disinvestment of a Public Sector Undertaking has been granted by the Government.
The said rules shall be effective from 05th day of October, 2021.
The complete text of the Regulations may be viewed at below link: https://egazette.nic.in/WriteReadData/2021/230180.pdf
Last updated: 14/10/2021
Article contributed by:
Associate - Legal
