CAIRR Update February 14, 2024

14/02/2024

Summary of the IBBI Circulars dated 13/02/2024.

These circulars are integrated in our free-to-use website ca2013.com.

1. Reporting / Sharing of information in the Voluntary Liquidation process of Financial Service Provider.

As the definition of ‘corporate person’ excludes financial service provider (“FSP”), the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, allows FSPs to undergo a voluntary liquidation process only after being notified by the Central Government under Section 227 of the Insolvency and Bankruptcy Code, 2016 and obtaining prior permission of the appropriate financial regulator. 

The Liquidator has been directed to submit a copy of Form H and the final report filed before the Adjudicating Authority, along with the order for dissolution to the Board to the email ID: liqvol@ibbi.gov.in.

Click here to view the IBBI on Reporting/ Sharing Information in the Voluntary Liquidation Process

2. Deposit and withdrawal of unclaimed dividends and / or undistributed proceeds during the voluntary liquidation process.

The circular has listed the following details to be submitted by the Liquidator, through Form-I, to process the request received from a stakeholder who claims any amount deposited into the Corporate Voluntary Liquidation Account for withdrawal before the dissolution of the corporate person:

1. Name and CIN/LLPIN of the Corporate Person
2. Voluntary Liquidation Commencement Date
3. Date and amount of Deposit into the Corporate Voluntary Liquidation Account
4. Acknowledgement number issued by the Board
5. Amount (Rs.) being requested for withdrawal
6. Name of the stakeholder to whom the amount proposed to be distributed and the Serial Number at which his name appeared in the list submitted to the Board.
7. Reason for earlier non-distribution of such an amount and the Justification for the present request
8. Details of the account where the amount is to be refunded.

Click here to view the IBBI Circular on Deposit and withdrawal of unclaimed dividends and/ or undistributed proceeds in the Voluntary Liquidation Process.