This week in Indian law: The RBI's Monetary Policy Committee held the repo rate at 6.5 per cent for the second consecutive meeting, confirming the end of the aggressive tightening cycle. The Insolvency and Bankruptcy Board of India published a discussion paper proposing amendments to CIRP Regulations aimed at improving resolution timelines. 2 significant legal developments this week across regulatory-updates and corporate-insolvency.
Top story
RBI MPC Holds Repo Rate at 6.5% for Second Consecutive Meeting
Category: regulatory-updates | Date: 8 June 2023 | Source: Reserve Bank of India
The Reserve Bank of India's Monetary Policy Committee unanimously decided to hold the benchmark repo rate at 6.5 per cent for the second consecutive meeting, following the first pause in April after six consecutive hikes. RBI Governor Shaktikanta Das retained the stance of 'withdrawal of accommodation' but acknowledged that inflation pressures had moderated, with CPI inflation declining to 4.25 per cent in May. The RBI projected CPI inflation at 5.1 per cent for FY2024 and real GDP growth at 6.5 per cent.
Why it matters: The second consecutive pause effectively confirms that the tightening cycle has ended, providing certainty for borrowers, corporates, and the real estate sector on the interest rate trajectory.
Read more: Veritect analysis
Corporate and insolvency
IBBI Proposes CIRP Amendments to Improve Resolution Timelines
Date: 7 June 2023
The Insolvency and Bankruptcy Board of India (IBBI) published a discussion paper proposing amendments to the CIRP (Corporate Insolvency Resolution Process) Regulations. Key proposals include measures to reduce delays caused by litigation, streamline the Committee of Creditors' decision-making process, enhance the role of the resolution professional, and introduce standardised timelines for specific stages of the CIRP. The discussion paper invites stakeholder comments.
Key point: IBBI's proposals aim to address the systemic issue of CIRP delays, where the average resolution timeline has significantly exceeded the statutory 330-day limit prescribed under Section 12 of the IBC.
Also this week
- SC summer vacation continues — Limited bench hearings for urgent matters; Manipur situation monitored by vacation bench.
- Parliament not in session — Monsoon session expected to commence in July; Delhi Ordinance to be converted to Act.
- IT Rules FCU debate — Bombay HC stay on fact-check unit provision continues; constitutional challenge proceedings.
Looking ahead
- June 15: Bombay HC expected to hear CGST Section 83 attachment matters.
- June 20: SEBI expected to issue ESG mutual fund regulation amendments.
- July: Supreme Court to resume from summer vacation. Parliament Monsoon session begins mid-July.
This is the Veritect Weekly Legal Roundup for Week 23 of 2023. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.