Due to increasing pressure on the Indian economy of emerging scams and frauds from various financial and Non-financial organizations, the Central government with the view to protect the interest of investors and in consultation with Reserve Bank of India, have exercised its power conferred under section 227 of the Insolvency and Bankruptcy Code, 2016 and;
Bring the Non-banking finance companies (which include housing finance companies) with asset size of Rs.500 crore or more, as per last audited balance sheet under the preview of this Code.
So now the insolvency resolution and liquidation proceedings of the above categories of NBFC’s 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.
Earlier this code was applicable to only:
Source: MCA notification
