The Insolvency and Bankruptcy Board of India recently released a discussion paper proposing various amendments to the liquidation process under the IBBI (Liquidation Process) Regulations, 2016 (Liquidation Regulations) and Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. Part A of the discussion paper proposes changes in the liquidation regulations in relation to (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 by (i) dispensing with the requirements of the Public Account of India and (ii) utilizing interest income for stakeholder awareness campaigns. Part B of the discussion paper proposes changes in the voluntary liquidation regulations in relation to (a) uncalled capital or unpaid capital contribution and (b) improving the management of unclaimed proceeds in the Corporate Voluntary Liquidation account by (i) dispensing with the requirements of the Public Account of India, (ii) utilizing interest income for stakeholder awareness campaigns, and (iii) facilitating the claim withdrawal process.

Public comments may be submitted by 9^th December, 2024.

Click the icon to access the discussion paper-