The insolvency regulator – Insolvency and Bankruptcy Board of India (IBBI) – has proposed mandatory disclosures about the status of a corporate debtor, being registered or not, as an MSME (micro, small or medium enterprise) in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.
The regulator has also proposed that if available documents suggest the debtor qualifies as an MSME, the resolution professional may obtain an Udyam Registration Certificate on a case-by-case basis before making the disclosure in the information memorandum (IM).
These changes have been proposed after several instances came to fore where the classification of a corporate debtor as an MSME has been…
