The markets watchdog SEBI is working on the guidelines for insolvency resolution professionals under the capital market norms so the recently introduced Bankruptcy & Insolvency Code is implemented better.
The market watchdog is jointly working with the Insolvency & Bankruptcy Board to address the issue and the new guidelines will be issued this year itself, SEBI Chairman Ajay Tyagi said here today.
He noted that the SEBI has already relaxed the norms related to issue of capital and disclosure requirements as well as regulations on substantial acquisition of shares and takeovers to align with the new Bankruptcy & Insolvency Code.
"There are various other issues which have come to our notice in terms of resolution professionals being in-charge of a company for 180 days at least, when resolution plan is underway," Tyagi said on the sideline of BSE's conference on Insolvency & Bankruptcy Code.
"What would be the obligations on the resolution professionals under the listing regulations or what are the other requirements. They need to be jointly worked out with the Bankruptcy Code Board of India and provisions made on that," he added.
Tyagi further said the provision is being worked out on a priority basis can be expected within this year itself. Addressing the conference, Tyagi noted that a prompt and transparent exit mechanism is equally important as the entry into a businesses.
"This code is one of the most important reforms undertaken by the country in the recent times," he said, adding all the issues related to insolvency would be resolved in a timely manner and would benefit all stakeholders and would go a long way in attracting more investments.
Though he expects the Code to help development of the corporate bond market, its impact could be accessed only in the next few years, he said.