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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