The NSE clarified that regulatory exemptions applicable to IBC Section 31 resolution plans do not extend to plans approved under Section 54L in the PPIRP framework, necessitating compliance with SEBI requirements.
NSE Clarifies SEBI Exemptions for PPIRP Plans
The National Stock Exchange (NSE) has addressed the regulatory status of resolution plans under the Pre-Packaged Insolvency Resolution Process (PPIRP). It confirmed that the regulatory exemptions typically available for plans approved under Section 31 of the Insolvency and Bankruptcy Code (IBC) do not apply to those approved under Section 54L of the framework.
This clarification emphasizes the requirement for listed entities to comply with all relevant SEBI regulations when pursuing PPIRP resolution plans. The distinction between the two sections underscores the regulatory complexity surrounding corporate insolvencies and the necessity for precision in compliance strategies.
Practitioners working in insolvency law must be aware of these distinctions to mitigate risks of non-compliance. This clarification reinforces the importance of thorough review and adherence to applicable regulations in any resolution process.
Citations
- NSE Circular No. PPIRP/2026/01
