Sahoo takes charge as Insolvency and Bankruptcy Board chief

New Delhi: M S Sahoo on Saturday took charge as Chairperson of the Insolvency and Bankruptcy Board of India (IBBI).

The oath of office was administered by Finance and Corporate Affairs Minister Arun Jaitley here.

Sahoo, a financial markets expert, was appointed as IBBI Chairperson for a period of five years last month.

The Finance Ministry tweeted photographs of Sahoo taking oath.

Prior to this appointment, Sahoo was a Member of Competition Commission of India (CCI). He was also a Whole Time Member of the Securities and Exchange Board of India (Sebi).

Among other positions, he has served as Chairman of the government-appointed committees on depository receipts, domestic and overseas capital markets, and external commercial borrowing.

IBBI would regulate the functioning of insolvency professionals, insolvency professional agencies and information utilities under the Insolvency and Bankruptcy Code, 2016.

The Code, notified by the government in May, seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.

Under the new law, employees, creditors and shareholders would have powers to initiate winding up process at the first sign of financial stress such as serious default in repayment of bank loan.