Saturday 14 May 2016

Daily Updates and News

Insolvency and Bankruptcy Code 2016

Rajya Sabha passed the Insolvency and Bankruptcy Code 2016. The new code will provide a framework for dealing with bankruptcies, replacing multiple laws dealing with the issue, including the Companies Act. It will cover individuals, companies, limited liability partnerships and partnership firms. It will also help creditors recover loans faster. Under the new code, employees and workmen will have first right during liquidation of assets under the law followed by secured creditors. A debtor could be jailed for up to five years for concealing property or defrauding creditors under the new law. Bankrupt individuals would be barred from contesting elections. The code is yet to receive the presidents assent.

SEBI

Securities and Exchange Board of India has issued guidelines for public issue of units of Infrastructure Investment Trusts (InvITs). The detailed guidelines as placed at Schedule-A of the circular shall be applicable to public issue of units of InvITs. The circular provides detailed guidelines which covers filing of offer document, price and price band and general conditions to be observed while offering public issue of units of InvITs. Further, SEBI has provided the formats of Due Diligence Certificate to be given by merchant banker at various stages of the public issue, formats of post issue reports and format of abridged version of the offer document. These guidelines have to be read with SEBI (Infrastructure Investment Trusts) Regulations, 2014. The Circular is available on SEBI website under the categories “Legal Framework” and under the drop down “Circulars”.

Thanks & Regards,
Meetesh Shiroya

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