Pai, Kotak head key panels on insolvency framework
The Insolvency and Bankruptcy Board of India (IBBI), the apex regulatory body under the new bankruptcy code, has constituted two high-profile panels to advise it on key issues on the upcoming framework, which the government and various stakeholders see as a key reform.
The advisory committees, which have representation from economists, industry, banking, securities market, professional bodies and legal experts, was picked by IBBI Chairman M S Sahoo last month. Headed by former Infosys executive Mohandas Pai and Kotak Mahindra Bank Vice-Chairman and Managing Director Uday Kotak, the panels quickly went to work.
In marathon meetings in the capital earlier this month, they deliberated on key issues and helped the regulator finalise regulation that would govern various aspects concerning the process and service providers which would manage the process.
“The committees spent two full days in the capital and helped chisel out the final structure. Draft regulation that ran into 15,000 words were brought down to less than a third, bringing in clarity. The result is among the best-drafted regulations in the country today," sources familiar with the development said.
In the process, the new regulator has set a record of sorts. Less than two months into its life, it has already notified several key rules governing the corporate insolvency framework. Sahoo took office on October 1 as the first IBBI chairman. This week, IBBI has notified three key regulations and more are on the way. Most other regulators in the country did not even come close with some old-timers claiming none of them managed to notify their first regulation before completing two years.
Pai, former Infosys chief financial officer and chairman of Manipal Global Education, heads the nine-member advisory panel on service providers. This committee will advise and provide professional support to IBBI on regulation and development of the service providers to be dealt with by the regulator under the insolvency code.
Members of this panel include National Stock Exchange Vice-Chairman Ravi Narain, economist Ajay Shah, senior advocate Amarjit Singh Chandiok, Gujarat National Law University professor Bimal N Patel and Securities and Exchange Board of India Executive Director J Ranganayakulu. Apart from them, K V R Murthy, joint secretary at the ministry of corporate affairs (MCA), and the presidents of the professional bodies of chartered accountants and company secretaries would also be part of this panel.
The second advisory committee headed by Kotak, the Kotak Mahindra Bank vice-chairman & MD, will advise “on any matter relating to corporate insolvency and liquidation" to be dealt with by the board. It can also give suggestions on its own volition.
The members of this eight-member panel include BSE chief Ashish Kumar Chauhan, M V Nair, chairman, Credit Information Bureau (India), senior journalist Omkar Goswami and securities lawyer Somasekhar Sundaresan. The MCA will be represented by Joint Secretary Gyaneshwar Kumar Singh, while the along with the presidents of the National Company Law Tribunal bar association and the chartered accountants’ body.
These two advisory panels would see through the initial phase of the regulator as they have been appointed for a term of three years.
Panel 1: Advisory committee on service providers
Chairman: Mohandas Pai
Key members: Ravi Narain, Ajay Shah, J Ranganayakulu and Bimal N Patel
Panel 2: Advisory committee on corporate insolvency and liquidation
Chairman: Uday Kotak
Key members: Ashish Kumar Chauhan, M V Nair, Somasekhar Sundaresan and Omkar Goswami