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Interim Union Budget 2019 – An Analysis Dear Reader, The Hon’ble Interim Finance Minister Mr Piyush Goyal announced the Interim Union Budget 2019 today. The attached booklet contains an analysis of the key announcements. Usually a vote on the account does not bring with it massive changes; however, this year was different in that there are several important changes proposed to reduce the tax burden on the middle-class taxpayers, MSMEs and rural populace. It has managed to strike the right balance wherein every segment of society gets a little bit, with the promise of lots more to come, as was clear from the Tandoor Manufacturer Interim Finance Minister’s vision for India over the next 10 years. Our endeavour is to ensure that it makes for an interesting read, and we welcome your feedback. Please connect with us with any queries or comments. As always, your feedback and comments are welcome.

IBC | Legislative Alert | IBBI clarifies on IPs’ fees, expenses and on insolvency resolution process cost The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular on 12 June 2018 (available here), for clarifying various obligations of the insolvency professional (IP) under the provisions of the Insolvency and Bankruptcy Code, 2016 (Code) in relation to fees, expenses and insolvency resolution process cost (IRPC). The circular has been issued in furtherance of the discussion paper earlier issued by the IBBI titled “Regulation of fee payable to IPs and other process costs under Corporate Insolvency Resolution Process” on its website on 1 April 2018. Following are the key obligations of IPs covered under the circular: 1. Illustrative list for reasonable fees provided. An IP can charge reasonable fees and what is reasonable is context specific and is not amenable to a precise definition. The circular has provided an illustrative list of factors considered in the det...

IBC | Legislative Alert | SEBI amends its regulations to provide for exemptions vis-a-vis resolution plans The Securities and Exchange Board of India (SEBI) has amended the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Code), SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (ICDR) and SEBI (Delisting of Equity Shares) Regulations, 2009 (Delisting Regulations), to provide for exemptions (as provided below) to resolution plans (Approved Resolution Plan) approved under section 31 of the Insolvency and Bankruptcy Code, 2016 (Code), with effect from 31 May 2018: 1. Takeover Code – Acquisitions to take shareholding beyond maximum permissible non-public shareholding Under the Takeover Code, there is an embargo for acquirers (holding shares between 25% to maximum permissible non-public shareholding) to not acquire or enter into an agreement to acquire shares or voting rights exceeding such Tandoor Manufacturer number of shares...

IBC | Legislative Alert  Further to notification of the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018, dated 3 July 2018 (“CIRP Amendment”), the Insolvency and Bankruptcy Board of India (“IBBI”) has applied the provisions of CIRP Amendment in relation to appointment of authorised representative for class of creditors, to the existing corporate insolvency resolution processes (“CIRP”) as well, vide a clarificatory circular issued on 13 July 2018 (available here) (“IBBI Circular”). The IBBI Circular states that such appointments are matters of procedure. As per the amendment introduced by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 promulgated on 6 June 2018 (“2018 Ordinance”), it had provided for ability of appointment of authorised representative for “class of creditors”, that is, creditors other than creditors in relation to consortium arrangements, Tandoor Manufacturer syndicate facility, where financi...

IBC | Legislative Alert | CIRP | Creditors in a class, authorised  Further to the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 on 6 June 2018 (“ 2018 Ordinance ”), the Insolvency and Bankruptcy Board of India (“ IBBI ”) has substantially amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“ CIRP Regulations ”) vide the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018, dated 3 July 2018 (“ CIRP Amendment ”)  Key Highlights The key highlights of the CIRP Amendment are: timelines provided for various activities during the corporate insolvency resolution process (“ CIRP ”), including setting out the timeline for submission of claims, constitution of committee of creditors (“ COC ”), calling COC meetings, voting by members of COC, release of invitation of expression of interest (“ EOI ”), information memorandum (“ IM ”), evaluation matrix (“ EM ”), r...