NCLAT Upholds IBC Over Exchange Powers
India’s National Company Law Appellate Tribunal (NCLAT) has dismissed appeals from the Bombay Stock Exchange (BSE), reinforcing the National Company Law Tribunal’s (NCLT) authority to unfreeze Demat accounts for companies in insolvency. The decision, dated March 29, 2026, emphasizes the Insolvency and Bankruptcy Code’s (IBC) precedence over securities laws for distressed companies. The BSE argued that Demat account issues belonged to securities law, not the IBC. However, the NCLAT confirmed the NCLT’s jurisdiction under Section 60(5) of the IBC to handle these cases. The case involved Future Corporate Resources and Liz Traders and Agents, whose Demat accounts were frozen by the BSE for unpaid…