Category: IBC-SEBI

Ex-Chairperson of IBBI-Mr Sahoo [ & Mr Raghav Pande ] elaborately discuss how bank guarantee — particularly in IBC parlance–should be evaluated [1] Personal guarantee works before the default occurs [2] The guarantee discourages excessive risk taking, mitigates moral hazard and aligns the promoter’s interests more closely with those of the lender and the company [3] Thus a guarantee has two kinds of value– Its ex-post value is the additional recovery it can provide after default– Its ex-ante value is the discipline it creates before default -[4] A guarantee is not magic collateral –it is not meaningless paper either. It is simultaneoulsly a risk allocation mechnism , an incentive value may operate long before defaualt.[5] What that guarantee was actually worth before distress and after distress–therefore, becomes the right question—Courtesy BS

Continue reading

What really happened [1] As per SC decision in 2021 —Phoneix case– Related parties are not creditors and cannot be part of CoC— In Chandra case Related parties allegedly were included in CoC and it overwhelmingly affected majority criteria [2] RP accepted 31.79 crores net worth—which was estimated at 22000 crores —and it was done  without substantial scrutiny and despite several creditors seeking appointment of an independent forensic auditor — [3] Section 96[4] —which allows the debtor to secure an internal moratorium on claims and manage his assets —has been done away with in May,2026– Had this amendment been put in place earlier– possibly the case would have gone entirely opposite direction–Courtesy Editorial BL

Continue reading

SEBI Chairman deals with SME and AI– [1] SME listing framework will be looked into to address difficulties with the existing rules related to trading, migration to mainboard, market making and underwriting. [2] AI has to be accountable–says every SEBI regulated entity would remain fully responsibile for any AI or ML tool it uses. This responsibility should extend to privacy, security and integrity of investor data as well as the outputs generated by such systems–News courtesy BL

Continue reading

1 2 3 … 227