Pre-Packaged Insolvency Resolution Process Regulations, 2021 published by the Insolvency and Bankruptcy Board of India.
On 4 April 2021, The Insolvency and Bankruptcy Code (Amendment) Ordinance,2021, by getting assent from the President, the IBC informs micro, small and medium enterprises which are known as corporate debtors. The Insolvency and Bankruptcy Board of India has now started the implementation of a pre-packaged insolvency resolution process i.e PPIRP.
According to PPIRP regulations, it states how the stakeholders can use PPIRP or the way different types of activities take place. These regulations include information on:
- Eligibility to act as resolution professional, and his terms of appointment;
- Eligibility of registered valuers and other professionals;
- Identification and selection of authorized representative;
- Public announcement and claims of stakeholders;
- Information memorandum;
- Meetings of the creditors and committee of creditors;
- Invitation for resolution plans;
- Competition between the base resolution plan and the best resolution plan;
- Evaluation and consideration of resolution plans;
- Vesting management of corporate debtor with resolution professional;
- Termination of PPIRP.
A PPIRP is an out-of-court procedure that can be considered as a “peaceful way of resolving a dispute,” since the Corporate Insolvency Resolution Process (CIRP) has a history of poor connections between creditors and the corporate debtor.
Investors are advised to avoid impersonation by the SEBI.
The SEBI has discovered that dishonest people are committing fraud with investors and the general public by using the SEBI title. These people send emails pretending to be SEBI workers. Investors are often forced to pay money in the name of transaction costs, other fees, and so on. SEBI warns investors against such impersonations and offers some advice before giving any details to such emails.
Be careful of emails or other communications claiming to be from SEBI employees. http://scores.gov.in is the only official and legitimate SEBI website where an investor can file a complaint. SEBI has cautioned investors not to be fooled by fake emails. Such frauds can be reported to the local police or a cybercrime authority as soon as possible. SEBI does not demand money or fees in any way for the settlement of grievances.