The Insolvency and Bankruptcy Board of India (IBBI) has inked a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) for seeking better implementation of the Insolvency and Bankruptcy Code, 2016 (Code) and its allied rules and regulations.
IBC has redefined the debt-equity relationship and aims at promoting the entrepreneurship and debt market.
Under the MoU, both IBBI and SEBI have agreed to assist and co-operate with each other for the implementation of the Code effectively, subject to limitations imposed by the applicable laws.
The MoU provides for:
(a) sharing of information between the two parties, subject to the limitations imposed by the applicable laws;
(b) sharing of resources available with each other to the extent feasible and legally permissible;
(c) periodic meetings to discuss matters of mutual interest, including regulatory requirements that impact each party’s responsibilities, enforcement cases, research and data analysis, information technology and data sharing, or any other matter that the parties believe would be of interest to each other in fulfilling their respective statutory obligations;
(d) cross-training of staff in order to enhance each party’s understanding of the other’s mission for effective utilisation of collective resources;
(e) capacity building of insolvency professionals and financial creditors;
(f) joint efforts towards enhancing the level of awareness among financial creditors about the importance and necessity of swift insolvency resolution process of various types of borrowers in distress under the provisions of the Code, etc.
The MoU was inked by Anand Baiwar, Executive Director, SEBI, and Ritesh Kavdia, Executive Director, IBBI, at Mumbai.