New norms for cos under bankruptcy proceedings

Sebi plans to bring in additional disclosure requirements for listed corporates undergoing insolvency resolution process as well as amend norms pertaining to minimum public shareholding norms and other provisions for such entities, a senior official said.

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 timebound manner. The regulator is planning to come out with a discussion paper on compliance with Sebi norms by listed companies undergoing insolvency resolution process. The proposal is likely to be discussed by Sebi's board during its meeting on March 28. 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.