NCLAT implements SEBI as part of the statement submitted by RIL regarding Alok Industries
New Delhi, September 11 () The National Court of Appeals for Company Law (NCLAT) has implemented the SEBI market regulator as part of a petition filed by Reliance Industries Ltd, which seeks an exemption in the Alok Industries exclusion procedure .
A two-member NCLAT bank headed by President Justice S J Mukhopadhaya has issued a notice to the Securities and Exchange Board of India (Sebi) as a respondent proforma for this.
RIL has Alok Industries in debt in its fold after the Ahmedabad Bank of the National Court of Corporate Law (NCLT) approved its resolution plan of Rs 5,050 million earlier this year in March.
However, in approving the scheme, the NCLT did not consider RIL's request to grant exemptions in the exclusion from the list and now the matter has been brought before the NCLAT Court of Appeals.
... taking into account the fact that the appellant (RIL) has been based on the notification of amendment by SEBI. That SEBI be implemented as a proforma defendant No. 3, said NCLAT.
The order added: A formal notice will be issued at SEBI.
The appeals court has also ordered the resolution professional and the Creditors Committee (CoC) of Alok Industries to submit their affidavit of response within two weeks and the rejoinder, if applicable, within one week of it.
The NCLAT had ordered the matter listed on October 15, 2019 for the admission of RIL's guilty plea.
Alok Industries, an integrated textile company based in Mumbai, was on the first list of 12 companies issued by the Reserve Bank of India in 2017 for initiating insolvency proceedings.
Last year, Sebi relaxed the requirements to comply with the list exclusion rules for companies facing insolvency proceedings, provided that the resolution plan establishes the procedure for the exclusion of that particular entity from the exchanges.
In a notification, the market regulator had said that the rules regarding the exclusion of capital shares would not be applicable to any entity that is removed from the list in accordance with a resolution plan approved by the IBC.
The exemption would be subject to conditions in which the resolution plan establishes any specific procedure to complete the exclusion of such actions or that the plan offers an exit option to existing public shareholders at a specific price. The notification was issued on June 1. KRH KRH MR MR