SEBI and Insolvency Board Signs MoU for IBC's Implementation

The Insolvency and Bankruptcy Board of India (IBBI) signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI).

The IBBI and the SEBI seek effective implementation of the Insolvency and Bankruptcy Code, 2016 (Code) and its allied rules and regulations, which have redefined the debt-equity relationship and aims to promote entrepreneurship and debt market.

They have agreed under the MoU to assist and co-operate with each other for the effective implementation of the Code, subject to limitations imposed by the applicable laws.

The MoU provides for sharing of information between the two parties, subject to the limitations imposed by the applicable laws;

It will also focus on sharing of resources available with each other to the extent feasible and legally permissible;

The MoU will help cross-training of staff in order to enhance each party's understanding of the other's mission for effective utilisation of collective resources;

The MoU also provides for capacity building of insolvency professionals and financial creditors.

The MoU was signed by Anand Baiwar, Executive Director, SEBI, and Ritesh Kavdia, Executive Director, IBBI, at Mumbai.