BSE Guidance note for companies undergoing Corporate Insolvency Resolution Process

The Bombay Stock Exchange through circular dated 09 July 2021 has issued Guidance note for companies undergoing Corporate Insolvency Resolution Process. LODR Regulations contain the list of events that are required to be disclosed in relation to CIRP.

In consultation with SEBI, BSE directs that the following disclosures shall also be submitted to the Exchange in addition to those already prescribed under the LODR Regulations:

  1. Prior intimation of at least two working days intimating about the date of hearing where NCLT would be considering the Resolution Plan.
  2. Disclosure of the approval of resolution plan to be made to the Exchange on oral pronouncement or otherwise of the Order on immediate basis and not later than 30 minutes.
  3. The Resolution Professional shall inform through the Exchange platform any impact on the existing holders / investors of listed securities on areas such as status of listing, the value of holding of existing holders, write off/ cancellation/ extinguishment of existing equity shares/ preference shares/ debentures, etc. without any payment to such holders, where applicable.
  4. Companies/Resolution Professionals are advised to be guided by the provisions of the LODR Regulations and advised to maintain the confidentiality of the resolution plan until details are not submitted on the Exchange Platform.