NSE has announced that the regulatory exemptions available for Section 31 plans under IBC do not extend to resolution plans approved under Section 54L in the PPIRP framework. Compliance with all SEBI requirements remains mandatory.
NSE Clarifies SEBI Relaxations Do Not Apply to PPIRP Plans
The National Stock Exchange (NSE) has emphasized that the regulatory exemptions granted for resolution plans under Section 31 of the Insolvency and Bankruptcy Code (IBC) do not apply to plans approved under Section 54L within the Pre-Packaged Insolvency Resolution Process (PPIRP). This clarification underscores the necessity for listed entities to adhere to SEBI's stringent compliance requirements, regardless of the provisions of the PPIRP framework.
Under Section 54L, the PPIRP structure was introduced to facilitate quicker and more efficient resolution processes for companies. However, NSE’s clarification serves as a reminder that these processes do not afford additional regulatory leniency, thus maintaining the integrity and enforcement of SEBI rules.
For practitioners, this development reinforces the importance of ensuring compliance with SEBI’s regulations when engaging in resolution processes under the PPIRP. Legal professionals must remain vigilant about the distinctions between different sections of the IBC and the applicability of SEBI's regulations to avoid inadvertent breaches.
Citations
- NSE Circular (2026) Section 54L
