IBBI proposes bidders disclose beneficial ownership in their entities

The insolvency regulator has proposed mandatory beneficial ownership disclosures by bidders under the Insolvency and Bankruptcy Code to improve due diligence and prevent misuse of Section 32A immunity

In order to prevent the misuse of Insolvency and Bankruptcy Code’s (IBC’s) “clean slate” concept, the insolvency regulator has proposed detailed disclosures by bidders on beneficial ownership of their entities. The Insolvency and Bankruptcy Board of India (IBBI) has invited public comments on its proposed template of disclosures released in a discussion paper titled “Measures to Enhance Integrity of the Corporate Insolvency Resolution Process”.

 

“The template requires the prospective resolution applicant (PRA) to disclose all natural persons having ultimate ownership or control, together with jurisdictional and structural details of all intermediate entities forming part of the ownership chain,” the IBBI