CAIRR Update October 1, 2021

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CAIRR Update October 1, 2021

October 01, 2021

Summary of the guidance note, circular and notifications issued by BSE and IBBI on 30/09/2021
Clarification on filing of disclosures on Related Party Transactions (RPTs) in XBRL mode under LODR Regulations.

Listed entities submitting only standalone financial result/ both standalone & consolidated financial results under Regulation 33 of LODR regulations, shall file RPT disclosures on standalone /consolidated basis respectively in XBRL mode, under Regulation 23(9) of said regulation.

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IBBI’s Electronic Platform for hosting Public Notices of Auctions of Liquidation Assets under the IBBI (Liquidation Process) Regulations, 2016
To improve visibility for the liquidation assets being sold and to expedite the realization of proceeds, IBBI has launched a centralized platform on its website(www.ibbi.gov.in) to host all public notices of auctions of liquidation assets of ongoing liquidation processes, in which the Liquidators shall upload the public notice of every auction of any liquidation asset on the day of its publication in newspapers, with effect from 01/10/2021.
IBBI amends Corporate Insolvency Process Regulations
Key highlights of the amendment are:

      1.       Changes to invitation of expression of interest from the prospective resolution applicants, evaluation matrix or resolution plan shall not be made more than once.

      2.       The Committee of creditors constituted under this regulation shall reject resolution plans that are received beyond the specified timeline or from a person who doesn’t appear in the final list of prospective resolution applicants or doesn’t comply with the criteria indicated in the Code and in the Regulations with respect to filing of affidavit, declaration etc.

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IBBI amends Liquidation Process Regulations

Key highlights of the amendment are:
1. Stakeholders’ Consultation Committee:

Increase in Scope: The committee to advise the liquidator on appointment and remuneration of professionals, in addition to sale related matters.

Class Representation:  If the stakeholders of any class fail to nominate their representatives, such representatives shall be selected by a majority of voting share of the class, present and voting (as against electing based on stakeholders with the highest claim amount in that class).

Progress Report: Where the liquidator takes a decision different from the advice given by the consultation committee, the same shall be recorded in the next progress report.

2. Auction process: Non-refundable deposit or fee for participation in an auction is not required under the liquidation process. Also, the earnest money deposit shall not exceed 10% of the reserve price. If the liquidator rejects the highest bid, the reason for such rejection shall be communicated to the highest bidder and shall be recorded in the next progress report.

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By | 2021-10-01T13:34:00+00:00 October 1st, 2021|ca2013.com|0 Comments

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