New Delhi: The Centre on Friday notified rules under the Insolvency and Bankruptcy Code to deal with resolution of systemically important financial service providers, except banks.
The Corporate Affairs Ministry, which notified the rules, said it would provide a generic framework for insolvency and liquidation proceedings of systemically important financial service providers (FSPs) other than banks.
Notification of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, comes at a time instances of financial stress are reported from certain financial services entities.
Corporate Affairs Secretary Injeti Srinivas, in a statement, said, “The special framework provided under Section 227 for financial service providers is essentially aimed at serving as an interim mechanism.”
