Markets regulator Sebi on Wednesday said it plans to amend norms pertaining to minimum public shareholding and other provisions as well as put in place additional disclosure requirements for listed corporates undergoing insolvency resolution process. After approval from its board today, Sebi has come out with a discussion paper on compliance with Sebi Regulations by listed entities undergoing corporate insolvency resolution process under the IBC.
The proposal comes at a time when there are increasing number of cases coming up under the Insolvency and Bankruptcy Code (IBC) as entities look to address issues of stressed assets in a time-bound manner.
“Various issues flagged in the discussion paper include aspects relating to disclosures, trading in stock exchanges, material related party transactions, re-classification of promoters, compliance with minimum public shareholding requirement and delisting pursuant to resolution plan/ liquidation,” Sebi said in a release. Amendments are being proposed for certain Sebi norms on the basis of three stages of Corporate Insolvency Resolution Process — pre, ongoing and post CIRP stages.
listed companies under CIRP are likely to be subject to various disclosure requirements. Such entities would have to disclose about filing of application for initiation of CIRP as well as when creditors initiate the process and amount of default mentioned in the application.