Debtors raise concerns on resolution rules under insolvency code

Creditors are going ahead with insolvency proceedings initiated against 12 firms under the new IBC

Even as creditors are going ahead with the insolvency proceedings initiated against 12 companies under the new Insolvency and Bankruptcy Code (IBC), the latter are raising concerns on the procedures for appointment of Interim Resolution Professionals (IRPs). 

It appears some of the companies have approached the Securities and Exchange Board of India (Sebi) and other authorities for clarity on whether the current securities law, especially on insider trading and the takeover code, would apply.

“Some contentions have been raised in the insolvency proceedings. We are studying the feedback received,” said a regulatory official. 

Under the IBC, if a borrower is