Mumbai: Aimed at improving information information about the company registered underwent company resolution under the Code of Bankruptcy & Bankruptcy (IBC), Stock on Friday said that all professional resolution (Rp) must follow the norms of SBI disclosure that apply to all registered entities , At present, even though the RPS (people appointed by the court carrying out the completion process) are required to disclore the exchange of companies under the company below IBC, there are several examples of non-compliance, NSE said release.
Under new norms, Rp are also required to reveal to the company’s shareholders regarding the impact of all court decisions without consent through the exchange.
Sebi has changed the obligations of registration & disclosure requirements (LODR) for disclosure by RPS, which applies from January 8, 2021.
In their part, the exchange and brokers will also highlight the stock of all IBC companies, NSE said release.
If the bankruptcy court ordered the delisting of a company, the exchange would suspend trade in the company’s inventory, the release said.
Exchange will also publish detailed guidelines for disclosure by RPS.
This release also notes that exchanges must identify security in a way that will be easy for investors to know that currently under the process of settlement.
“Exchange will continue to provide a warning when an order entry that tells market participants that the script is undergoing (resolution under IBC).” The warning will be available from the day of receipt into the process of settlement until the day of suspension or out of the process of settlement, investors will have the right information about the company’s status, NSE said.
If the resolution plan allows the stock value listed to be reset to zero and the company is ordered to delisted, or “where all equity capital is reduced / canceled / extinguished without payment to the existing shareholders, exchanges in coordination with each other” must be suspended.