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Regulation of insolvent firms shares still remains a dilemma
By IANS |
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Sensex, Nifty hit new highs, oil & gas stocks rise (Credit: bsebti.com). Image Source: IANS News
New Delhi, April 17 : As India s Insolvency and Bankruptcy Code (IBC) evolves at a fast pace, a hard nut to crack for the market regulator has come up with regulations in terms of trading in the shares of companies going through resolution under IBC.
Several concerns have been raised in terms of trading in the stocks of insolvent companies as many of them gained substantially amid the bull run in the past one year.
A senior government official told ET that the new system with these features would be rolled out from October. It will significantly bring down compliance requirements for companies and will be a "more trust-based system", the official added.
A total of eight sections relating to the register of significant beneficial owners, disqualifications of directors, conduct of inquiries and inspections and non-cognizable offences will soon be applicable to LLPs, the MCA said in an intimation on Thursday.
Stronger safeguards the need of the hour, extend whistleblower provision: Experts
Current provisions of the Companies Act only require listed companies, firms that accept public deposits and firms that have loans from banks or public financial institutions of over Rs 50 crore to have a vigil mechanism. Updated: December 20, 2020 2:11:09 am
Experts also note that the absence of any specific guidelines on the functioning of a vigil mechanism has led to companies not ensuring that whistleblower complaints are addressed in a timely manner. (Representational Image)
India needs to strengthen safeguards for corporate whistleblowers and extend the requirement of a vigil mechanism to large private companies, as per experts. Current provisions of the Companies Act only require listed companies, companies that accept public deposits and companies that have loans from banks or public financial institutions of over Rs 50 crore to have a vigil mechanism to