Sebi proposes to amend norms for cos undergoing INSOLVENCY PROCEEDINGS

NEW DELHI: 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 time-bound 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, the official said.

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.

Besides, the entities would be asked to disclose details about the number of bids received by the insolvency resolution professional, filing of resolution plan as well as approval of the plan by the NCLT, among others.