IBBI Mandates Asset Listing On Ebkray Platform For Liquidation Cases
Date
11/1/2024 2:07:29 PM
(MENAFN- KNN India)
New Delhi, Nov 1 (KNN) The Insolvency and Bankruptcy Board of India (IBBI) has issued a directive requiring Insolvency Professionals (IPs) to mandatorily list all unsold assets from ongoing liquidation processes on the eBKray platform starting November 1.
The move aims to enhance transparency and efficiency in the liquidation process of corporate debtors.
Under the new guidelines, IPs must register all assets within seven days of submitting the asset memorandum to the Adjudicating Authority for liquidation processes initiated on or after October 29, 2024.
The eBKray platform will serve as an auction mechanism for asset sales beginning November 1.
The regulator has announced that the platform will initially operate in pilot mode, with improvements to be implemented based on user experience.
IBBI will subsequently notify the timeline for the platform's comprehensive rollout after evaluating the pilot phase performance.
This centralised listing and auction platform represents a significant improvement over the current system, where liquidators conduct asset sales through various auction platforms, and asset details are typically disclosed only when auction notices are published.
Industry experts note that the existing approach creates information asymmetry, limiting potential buyers' ability to properly evaluate assets and often resulting in suboptimal recovery rates.
(KNN Bureau)
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