The Ministry of Corporate Affairs in its Notification dated 18th November 2019, has notified that the Non-Banking Finance Companies (NBFC) (which include housing finance companies) with asset size of Rs. 500 crore or more, as per last audited balance sheet shall fall under the definition of Financial Service provider specified in Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.
The insolvency resolution and liquidation proceedings of the NBFCs shall be undertaken in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 read with the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. Further the appropriate regulator of the Non- Banking Financial Service provider shall be Reserve Bank of India (RBI) and dealing with third-party assets shall be notified separately.
Click here to read the Notification
