IBC norms for corporate debtors’ guarantors from Dec 1

Must Read

Sanju Samson to replace Shikhar Dhawan in T20 series against WI

Sanju Samson will replace injured Indian opener Shikhar Dhawan in the T20s series against West Indies starting from next...

Supreme Court lashes out on Centre & Delhi govts for Rising Pollution

The Apex Court of the Country, the Supreme Court on Monday lashed the Central and State Government for their...

Harbhajan Singh wishes BCCI Prez Sourav Ganguly to change Selection Panel

The Indian off-spinner Harbhajan Singh on Monday urged Sourav Ganguly, President of BCCI (The Board of Control for Cricket...
New Delhi, Nov 15 (IANS) In a bid to boost the bankruptcy and insolvency mechanism, the government on Friday said the insolvency regime and the norms for individual guarantors of corporate debtors will come into force from December 1.

A notification by the Ministry of Corporate Affairs (MCA) said that provisions of “(1) clause (e) of section 2, (2) section 78 (except with regard to fresh start process) and section 79”, among others, would come into force only in relation to personal guarantors of corporate debtors.

According to ‘Clause (e) of Section 2’ of the Insolvency and Bankruptcy Code (IBC), the provisions of the code shall apply to partnership firms and individuals.

The government is implementing the provisions for resolution of individuals under the IBC in a phased manner.

In another major development, the MCA on Friday also notified the rules for resolution of systemically important financial services providers (FSPs) under the bankruptcy law.

The new rules will ensure that problems in systematically important NBFCs such as Dewan Housing Finance Corporation (DHFL), IL&FS Financial Services, and India Bulls does not create trouble for the entire sector.

The rules provide a generic framework for insolvency and liquidation proceedings of systemically important FSPs other than banks.

–IANS
rrb-rv/vd

Disclaimer This article is published directly through a syndicated feed and not edited by The Indian Wire staff.

- Advertisement -

Latest News

Sports discovery space Sportido bags undisclosed amount of funding from IP Ventures, others

Sportido, a sports discovery startup, has bagged an undisclosed amount in its second round of funding from IP Ventures,...

Sequoia India, Hillhouse Capital, others infuse $70 million in used car platform CarDekho through series D round

CarDekho, a platform to sell and buy used cars and an automobile subsidiary of Girnar Group, has bagged $70 million (approx INR 498 crore) in series...

Omidyar Network, Eight Roads Ventures, others invest $6 million in used bikes startup Credr

Credr, a marketplace for used bikes, has secured $6 million (approx INR 38 crore) in an investment round from Omidyar Network, Eight Roads Ventures,...

PUBG mobile to get 90FPS support soon

Qualcomm announced its next-generation processor that will support 5G, 200 MP camera, and 144Hz displays. The new processor will have a new function that...

Opera v55 for Android brings Super Dark Mode

Opera is the oldest mobile browser, we have used it on simple keypad mobile to Android smartphones. It used to be the first choice...
- Advertisement -

More Articles Like This