Login With Google
Rules notified to bring financial firms under IBC
Why in news?
- The Central government issued rules that provide a framework for bringing ‘systemically important financial service providers’ under the purview of the Insolvency and Bankruptcy Code (IBC).
More on news
- Reason: there was no system like the IBC that was designed exclusively for financial institutions.
- Reserve Bank of India will now decide which financial companies would be taken up under these rules until further rules are notified.
- Section 227 of IBC enables the Central government to notify, in consultation with the financial sector regulators, financial service providers (FSPs) or categories of FSPs for the purpose of insolvency and liquidation proceedings, in such manner as may be prescribed.
Source
The Hindu.