Centre to Issue New Rules to Bring NBFCs Under Bankruptcy Code

The fear that at Dewan Housing Finance Corporation (DHFL) may spill over to other non-banking finance companies (NBFC) has pushed the government to introduce fresh rules and regulations to bring even the financial sector under the purview the Insolvency and Bankruptcy Code (IBC), The Economic Times reported. A government source said that Ministry of Corporate Affairs (MCA) has finalized new rules under Section 227 of IBC that would be notified soon after all the concerns of market regulator SEBI and financial sector regulator RBI are addressed. "There is a definite plan to open a window under existing insolvency laws to bring certain category of financial institutions including Housing Finance Companies under the purview of IBC. The delay is on account of concerns expressed by the regulators…,” said the source quoted earlier. Read more