Current Affairs - Persons - Discussion

Former Chairman of Securities and Exchange Board of India (SEBI), U.K. Sinha will head an 11-member working group constituted by the Insolvency and Bankruptcy board of India (IBBI) to study the concept of 'Group Insolvency' and suggest a suitable framework. The Working Group have to submit the report within two months recommending a regulatory framework to facilitate insolvency resolutions and liquidation of corporate debtors in a Group. It was noted that Corporate groups falls apart in insolvency and thereby thwart the chances of their restructuring. Group Insolvency will prevent this situation. Group Insolvency will be very beneficial in a situation where two or more applications are pending in the same court against debtors in the same group. Managing Director of State Bank of India, Anshula Kant and Executive Director and CFO of Tata Steel, Koushik Chatterjee are members this working group.