New Delhi, Nov 15: The Ministry of Corporate Affairs on Friday notified the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.
This will provide a generic framework for insolvency and liquidation proceedings of systemically important Financial Service Providers (FSPs) other than banks.
The Rules will apply to such FSPs or categories of FSPs, as will be notified by the Central Government under section 227 from time to time in consultation with appropriate regulators, for the purpose of their insolvency and liquidation proceedings.
The Insolvency and Bankruptcy Code, 2016 (Code) provides a consolidated framework for reorganisation, insolvency resolution and liquidation of corporate persons, limited liability partnerships, partnership firms and individuals in a time-bound manner.
Section 227 of the Code enables the Central Government to notify, in consultation with the financial sector regulators, financial service providers or its categories for the purpose of insolvency and liquidation proceedings, in such manner as may be prescribed.
These rules will come into force on the date of their publication in the official gazette, according to a Corporate Affairs Ministry statement here. (UNI)