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IBBI (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2018 notified

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

NOTIFICATION

New Delhi, the 5th October, 2018

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (INSOLVENCY RESOLUTION PROCESS FOR CORPORATE PERSONS) (FOURTH AMENDMENT) REGULATIONS, 2018

No. IBBI/2018-19/GN/REG032.—In exercise of the powers conferred by clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely:-

1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2018.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as the principal regulations), in regulation 2, in sub-regulation (1), clause (f) shall be omitted.

3. In the principal regulations, in regulation 21, for sub-regulation (3), following sub-regulation shall be substituted, namely: –

“(3) The notice of the meeting shall contain the following-

(i) a list of the matters to be discussed at the meeting;

(ii) a list of the issues to be voted upon at the meeting; and

(iii) copies of all documents relevant to the matters to be discussed and the issues to be voted upon at the meeting.”.

4. In the principal regulations, in regulation 25, for sub-regulation (5), the following sub-regulations shall be substituted, namely: –

“(5) The resolution professional shall-

(a) circulate the minutes of the meeting by electronic means to all members of the committee and the authorised representative, if any, within forty-eight hours of the conclusion of the meeting; and

(b) seek a vote of the members who did not vote at the meeting on the matters listed for voting, by electronic voting system in accordance with regulation 26 where the voting shall be kept open for at least twenty-four hours from the circulation of the minutes.

(6) The authorised representative shall circulate the minutes of the meeting received under sub-regulation (5) to creditors in a class and announce the voting window at least twenty-four hours before the window opens for voting instructions and keep the voting window open for at least twelve hours.”.

5. In the principal regulations, in regulation 26, after sub-regulation (1), the following sub-regulation shall be inserted, namely: –

“(1A) The authorised representative shall exercise the votes either by electronic means or through electronic voting system as per the voting instructions received by him from the creditors in the class pursuant to sub-regulation (6) of regulation 25.”.

6. In the principal regulations, in regulation 38, for sub-regulation (1), the following sub-regulation shall be substituted, namely: –

“(1) The amount due to the operational creditors under a resolution plan shall be given priority in payment over financial creditors.”.

7. In the principal regulations, in regulation 39, –

(a) in sub-regulation (1), clause (b) shall be omitted;

(b) sub-regulation (3A) shall be omitted;

8. In the principal regulations, after regulation 39, the following regulation shall be inserted, namely: –

“39A. Preservation of records.-The interim resolution professional or the resolution professional, as the case may be, shall preserve a physical as well as an electronic copy of the records relating to corporate insolvency resolution process of the corporate debtor as per the record retention schedule as may be communicated by the Board in consultation with Insolvency Professional Agencies.”.

Dr. M. S. SAHOO, Chairperson

[ADVT.-III/4/Exty./248/18]

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