(PTI) New Delhi. November 16, 2019, Saturday
The government has announced new rules for insolvency financial service providers other than banks. The Ministry of Corporate Affairs has announced the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.
The official statement says the new rules will provide the General Framework of Insolvency and Liquidation Procedures for systemically important financial service providers other than banks.
It is worth mentioning that the Corporate Insolvency Resolution Process (CIRP) for FSP will be initiated only after application by the appropriate authority.
Corporate Affairs Secretary Injeti Srinivas has stated that the purpose of the Special Framework given under Article 227 to financial service providers is to act as the intermediary.
Earlier this month, a senior official said that the government was planning to launch a special window to alleviate the concerns of non-banking finance companies in the financial crisis.
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