Government Mulling Special Window for NBFCs Under Insolvency Law

The government is mulling a special window for resolution of stressed non-banking finance companies under the Insolvency and Bankruptcy Code, a senior government official said, Mint reported. A special window, is certainly something which is being examined closely, the official said. The move also comes against the backdrop of financial sector players like Dewan Housing Finance Corporation Ltd (DHFL) facing troubles. Punjab and Maharashtra Co-operative (PMC) Bank is also grappling with financial woes. The effort is to come out with some mechanism to deal with financial service providers which require some resolution under an alternative framework pending the Financial Resolution and Deposit Insurance (FRDI) Bill or some specific provision coming in place, the official said. Read more