The National Stock Exchange (NSE), through Circular No. NSE/CML/2026/15 dated June 1, 2026, clarified the regulatory treatment of listed entities undergoing a Pre-Packaged Insolvency Resolution Process (PPIRP) under Chapter III-A of the Insolvency and Bankruptcy Code, 2016. Referring to guidance received from SEBI, the circular states that exemptions available under various SEBI Regulations for resolution plans approved under Section 31 of the IBC are not available to resolution plans approved under Section 54L under the PPIRP framework. Consequently, listed companies undergoing PPIRP cannot rely on regulatory relaxations typically available in conventional corporate insolvency resolution processes. Such entities must comply with all applicable procedural and regulatory requirements prescribed under relevant SEBI Regulations. The circular advises all listed companies to take note of this clarification and ensure full compliance. The clarification underscores the distinction between resolution plans approved under Section 31 and those approved under Section 54L of the IBC.
National Stock Exchange of India
Circular
Department: Listing
Circular Ref. No.: NSE/CML/2026/15 | Dated: June 01, 2026
To All Listed Companies,
Sub: Pre-Packaged Insolvency Resolution Process under Section 54L of the Insolvency and Bankruptcy Code, 2016.
Attention is invited to the provisions relating to Pre-Packaged Insolvency Resolution Process (“PPIRP”) under Chapter III-A of the Insolvency and Bankruptcy Code, 2016 (“IBC”).
In this regard, as advised by SEBI, it is clarified that, the exemptions available under various SEBI Regulations in respect of a Resolution Plan approved under Section 31 of the IBC are not available in case of a Resolution Plan approved under Section 54L of the IBC under the PPIRP framework. Accordingly, listed entities undergoing PPIRP shall be required to comply with all applicable procedural and regulatory requirements prescribed under the relevant SEBI Regulations.
The listed companies are advised to take note of the above and ensure compliance of the same.
For and on behalf of
National Stock Exchange of India Limited
Yukti Sharma
Head – Listing
