News & Media 30th Jun 2022
Insolvency regulator IBBI proposes to levy a ‘regulation fee’ of 0.25 per cent on the resolution value of corporate insolvency resolution plans approved under IBC as part of its efforts to shore up finances and reduce dependence on the Centre’s grants-in-aid. The proposed ‘regulation fee’ will apply in cases where the amount of the resolution plan exceeds the liquidation value.
Against this backdrop, Shailesh Poria, Partner at Economic Laws Practice (ELP) has been quoted by BusinessLine in their article titled ‘IBBI proposes ’regulation fee’ on corporate insolvency resolution plans to shore up its finances’. He says, “The regulatory fee of 0.25% as proposed by IBBI, will have to be factored in by the Resolution Applicant at the time of submission of the plan. However, it will ultimately impact the net proceeds received by the financial creditors under the resolution plan.”
Read the comment and detailed update here: https://bit.ly/3NwASg0
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