04-May-2026
Insolvency
 
Group insolvency fix only under strict confidentiality rule, to exclude foreign arms
04-May-2026

The government is likely to introduce a confidentiality clause under group insolvency regulations to prevent the leak of sensitive information among the resolution professionals (RPs) within a corporate group and to competition, even as the resolution process is under way. Also, to start with, resolution of stress in corporate groups will exclude the foreign subsidiaries and affiliates of the conglomerate, as it is felt that a coordinated mechanism with overseas jurisdictions and necessary legal processes might take time to evolve. According to official sources, the confidentiality clause among RPs is intended to ensure that the valuation of individual group entities undergoing resolution is not undermined.

News Source:- https://www.financialexpress.com/business/news/group-insolvency-fix-only-under-strict-confidentiality-rule-to-exclude-foreign-arms/4226268/