Financial Service Provider Insolvency Resolution Process – Insolvency/Bankruptcy

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When the Insolvency and Bankruptcy Code was introduced in 2016, an exception was made under Article 3(17) for financial service providers (FSPs) to prevent them from being dragged into insolvency. In 2019, the Ministry of Corporate Affairs issued a press release to introduce the Insolvency and Bankruptcy Rules 2019 (Insolvency and Winding-up Proceedings of Financial Service Providers and Application to Contracting Authority), to to provide a framework for the systematic insolvency and liquidation of PSF.

In the last #Simplified video series, our industry expert Abhirup Dasgupta discusses the provisions of the IBC relating to the corporate insolvency resolution process (CIRP) and the liquidation process applied to the resolution process for FSP in the same way as they apply to all other debtor companies, subject to certain sectoral differences.

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The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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