The weekly messenger | Edition 36.20

REGULATORY NEWS

Suspension of Initiation of Corporate Insolvency Resolution Process for further three months – 24 September 2020
 
In June 2020, the Ministry of Law and Justice had issued the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020, wherein a new Section 10A ‘Suspension of Initiation of Corporate Insolvency Resolution Process’ was inserted in the Insolvency Bankruptcy Code 2016, which suspended the initiation of fresh bankruptcy proceedings against persons impacted due to COVID-19 for defaults arising on or after 25 March 2020 for a period of six months or such further period, not exceeding one year.
 
Now, the government has decided to further extend the aforesaid suspension by another three months.
 
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Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020 – 24 September 2020

The Ministry of Corporate Affairs has issued the Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020, wherein the following changes have been made:

• For all application under sections 7, 9 and 10, earlier the applicant was required to serve a copy of the application to the registered office of the corporate debtor and to the Insolvency and Bankruptcy Board of India, by registered post or speed post. Now, the applicant has also been provided with an option to file the aforesaid application by electronic means
• Certain changes have been made in the following forms:

1. Form 1 Application by Financial Creditor to Initiate Corporate Insolvency Resolution Process;
2. Form 2 Written Communication by Proposed Interim Resolution Professional;
3. Form 5 Application by Operational Creditor to Initiate Corporate Insolvency Resolution Process;
4. Form 6 Application by Corporate Applicant to Initiate Corporate Insolvency Resolution Process.

• A new Form 5A has been inserted that is required to filled by the Bank/Financial Institution on their letter heads and to be attached with the application under section 9 in Form 5 certifying the details of all credits received from Corporate Debtor in that account during the last 3 years.

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Extension of time for sharing information by listed companies relating to System driven disclosures – 21 September 2020

As per the Securities and Exchange Board of India’s (SEBI’s) Circular dated 9 September 2020, on Automation of Continual Disclosures under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015 - System driven disclosures, the listed companies were required to share certain information with designated depository by 18 September  2020.  
 
Subsequently, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) vide their circulars dated 11 September 2020 and 14 September 2020, respectively, had enabled the listed companies to share the required information with them.   
 
Pursuant to this, SEBI was receiving various representations from listed companies which inter-alia includes extending the due date for sharing the information with designated depository. Accordingly, SEBI has informed the Exchange that, it has decided to extend the time for sharing the information with designated depository till 30 September 2020. 
 
For more information, click here.