THE SEBI-IBC RIFT
IBC is a consolidating act aiming to prevent delays. SEBI is a regulatory authority which was established by the SEBI act 1992 to protect the interest of investors and it has the power to encompass the stock exchange regulations. Recently IBC and SEBI has a rift over the issue of jurisdiction. SEBI was ordered by the NCLT to de-attach the property belonging to the corporate firm which was admitted in the corporate insolvency resolution process under IBC. As soon as SEBI came to know about this, they attached the assets of the corporate firm to compensate the investors under sections 11 and 11B of the act but in that time investors filled for the CIRP in NCLT against the company. Layman's CIRP definition "the corporate insolvency resolution process (CIRP) is a recovery mechanism given under the IBC to the creditors when the firm becomes insolvent". Thus property attached by SEBI should be de-attached because investors have already applied for the process o...