Category · IBC / NCLT

Your listed company is under IBC?

Two regulatory regimes — SEBI and IBC — running in parallel, with conflicting timelines and overlapping disclosure obligations. Specialist coordination is the only way through.

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What this means for you

The regulatory reality.

When a listed company enters the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, two regulatory worlds collide. The Resolution Professional takes operational control while LODR compliance continues. The Committee of Creditors drives the resolution timeline while market disclosures continue uninterrupted. Promoter rights compress dramatically. Equity value depends entirely on the eventual resolution plan. This is the most complex listed-company scenario — and it requires specialist advisory that understands both regimes.

Impact

The IBC + LODR collision points.

LODR continues to apply

Despite CIRP, the company remains listed. All material event disclosures, financial result filings, and shareholder communications continue — now signed by the RP rather than the board.

Promoter rights suspended

Promoters lose operational control to the RP. Board powers are suspended. Voting rights at AGMs may be restricted. The 29A bar may prevent participation in resolution.

Equity wipe-out risk

Resolution plans frequently extinguish existing equity entirely. Promoter and public shareholding can both go to zero. Some plans preserve minority equity; most do not.

Fresh listing complexity

A successful resolution often involves the resolution applicant taking the company forward — with a fresh listing event, shareholder approvals, and SEBI clearances all in parallel.

⚠ Critical to understand

Promoter optionality during CIRP is narrow but real

Promoters are generally barred by Section 29A from submitting a resolution plan for their own company. But they retain rights — to defend pre-CIRP transactions, to participate in stakeholder consultations, to protect minority equity where possible, and to negotiate post-resolution scenarios. Strategic promoter advisory during CIRP can materially influence outcomes, especially in cases where the resolution plan preserves some equity continuity or where the company exits CIRP without a successful resolution.

The Pathway

How R3 supports listed-company CIRP cases.

A sequenced four-step engagement built around the specific regulatory profile of your category. Modular, stage-wise, and promoter-friendly.

01
Pre-CIRP / triggered-case mapping
For companies facing imminent NCLT admission — assessment of options, defence strategies, voluntary debt restructuring alternatives, and Section 10 considerations.
02
LODR continuity during CIRP
Coordination with the RP for ongoing SEBI / exchange disclosures, shareholder communications, financial result filings, and AGM compliance during the resolution process.
03
Promoter strategic advisory
Within the constraints of Section 29A — promoter representation, transaction defence, stakeholder negotiations, and protection of any remaining equity value.
04
Post-resolution re-listing
For resolution applicants taking over listed companies — fresh listing structures, shareholder approvals, SEBI clearances, and the launch of the new entity in the markets.
Triggers

Typical IBC scenarios we handle.

If any of these sound familiar, the situation is more common than you think — and the pathway is well-defined.

  • Listed companies recently admitted to CIRP, needing parallel LODR + IBC support
  • Promoters facing imminent NCLT petitions seeking pre-CIRP restructuring
  • Resolution applicants planning takeover of distressed listed entities
  • Successful CIRP outcomes requiring fresh listing of the resolved company
  • Failed CIRPs heading to liquidation — minority shareholder protection
  • Promoter group facing related Section 29A questions and PMLA proceedings
Services

How R3 helps from here.

Distressed / IBC Advisory

End-to-end CIRP support — pre, during, and post.

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Promoter Advisory

Strategic defence, equity protection, post-CIRP positioning.

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Re-Listing & Fresh Issue

Post-resolution capital market re-entry for resolution applicants.

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The first 20 minutes are on us.

A confidential diagnostic call with our R3 team. We'll walk through your case, indicate revival or resolution feasibility, and outline the realistic next step. No fee, no commitment.

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