September 24, 2020
Summary of the circular and notification issued by SEBI and IBBI respectively on 23/09/2020
1. Listed Companies to share information under System Driven Disclosure (SSD) mechanism under SEBI (SAST) Regulations, 2011
SEBI’s circular on 09/09/2020 directed Listed Companies to share required information as part of SSD under PIT regulations. In order to align the practice under SSD process, SEBI now requires Listed Companies (as against their ‘RTAs’) to share the necessary information with the Designated Depository under SEBI (SAST) Regulations, 2011.
All the other requirements and procedure vide SEBI circular dated 01/12/2015 w.r.t SSD under SAST Regulations shall remain unaltered.
2. Suspension of initiation of fresh Corporate Insolvency Proceedings under IBC, 2016 with effect from 05/06/2020
Amendment to IBC, 2016 effected vide the Ordinance passed by the President of India on 05/06/2020 has been passed as an Act, thereby repealing the Ordinance.
Gist of the ordinance is reproduced below for quick reference:
Citing various reasons including hampering of conduct of business operations and assigning of resolution professionals to recover the defaulting corporates due to the CoVID-19 Pandemic, an ordinance has been passed with immediate effect to suspend initiation of fresh insolvency proceedings under Sections 7,9 and 10 for a period of six months, for defaults arising on or after 25/03/2020, or such further period, not exceeding one year, as may be notified in this behalf and no application shall be filed by resolution professional under Section 66(2) of IBC in respect of such default against which initiation of corporate insolvency resolution process is suspended as per section 10A.
The Ordinance has also clearly stated the non-applicability of this amendment to any default under the said sections committed before 25/03/2020.