Allahabad HC: MPs, Judges and Ministers May Use ‘Hon’ble’; Civil Servants are Not Entitled to it  ||  Calcutta HC: Salary Withholding and Harassment Claims are Not Defamation Without Reputational Harm  ||  Gauhati HC: Officer Resigning Without New Govt Appointment Cannot Claim Pension under Assam Service  ||  MP HC: Attachment & Auction are Quasi-Judicial Duties of Tehsildar; Action Invalid Without Mala Fide  ||  Supreme Court: Fence-Sitters Cannot Raise Seniority Disputes Once Third-Party Rights are Settled  ||  SC: Medical Negligence Claims Can be Filed Against Deceased Doctor’s Legal Heirs Who Inherit Estate  ||  Supreme Court: Bail Must Be Considered if Speedy Trial Rights are Violated, Regardless of Offence  ||  Supreme Court: Article 226 Cannot be Used to Seek FIR Registration Without Exhausting Remedies  ||  SC: Dowry Deaths Remain a Grave Social Issue, Especially in Uttar Pradesh, Bihar, and Karnataka  ||  Supreme Court Outlines Principles Governing Exercise of Jurisdiction under Article 227    

Compliances for initiation of Voluntary Liquidation of a Financial Service Provider- (Insolvency and Bankruptcy Board of India) (13 Feb 2024)

MANU/NMIC/0053/2024

Insolvency

1. The Code provides for the voluntary liquidation process of corporate persons. However, the definition of 'corporate person' in sub-section (7) of section 3 excludes any financial service provider (FSP). Section 227 read with the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 allows FSPs who have been notified by the Central Government, after consulting financial regulators, to undergo a voluntary liquidation process after obtaining prior permission of the appropriate regulator. It has been noted that some FSPs have commenced the voluntary liquidation process without notification and / or prior permission of the appropriate financial regulator.

2. Accordingly, it is hereby directed that the liquidator shall ensure that, if the corporate person falls under the category of financial service provider, it shall declare that:

(i) the category of Financial Service Providers has been notified by the Central Government under section 227 of the Code, and

(ii) the corporate person has obtained prior permission from the appropriate regulator.

Sharing of final report, Form H, and dissolution order with IBBI

3. It is hereby directed that the liquidator shall submit a copy of Form H and the final report filed before the Adjudicating Authority as per Regulation 38, and the order for dissolution to the Board to the email ID: liqvol@ibbi.gov.in.

4. This is issued in the exercise of the powers conferred under section 196 of the Insolvency and Bankruptcy Code, 2016.

Tags : COMPLIANCES   VOLUNTARY LIQUIDATION   FINANCIAL SERVICE PROVIDER  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved