IBBI Proposes Changes in Liquidation Regulations to Ensure Transparency in Compromise or Arrangement Schemes

Discussion Paper; Dated: 19.11.2024

IBBI has released a discussion paper proposing various amendments to the liquidation process under the IBBI (Liquidation Process) Regulations, 2016 and IBBI (Voluntary Liquidation Process) Regulations, 2017. Part A proposes changes in liquidation regulations in relation to (a) a review of the auction process, (b) ensuring transparency in compromise or arrangement schemes by mandating liquidator for applying closure of the liquidation process to the Adjudicating Authority, and (c) improving the management of unclaimed proceeds in the Corporate Liquidation account.

Part B proposes changes in voluntary liquidation regulations w.r.t uncalled capital or unpaid capital contributions and improving the management of unclaimed proceeds in the Corporate Voluntary Liquidation account.

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