IBC | Legislative Alert | Provisions in relation to financial service providers under the Code notified

The Central Government has notified the provisions (notification available here) in relation to financial service providers under the Insolvency and Bankruptcy Code, 2016 (“Code”), with effect from 1 May 2018. Section 227 of the Code deals with the power of the Central Government to notify financial service providers and provides that the Central Government may in consultation with the appropriate financial sector regulators, notify financial service providers or categories of financial service providers for the purpose of their insolvency and liquidation proceedings, which may be conducted under the Code, in such manner as may be prescribed.

In addition to the aforementioned, the Central Government has also notified the following provisions with effect from 1 May 2018, in relation to:

(i) release of annual reports by the Insolvency and Bankruptcy Board of India (“IBBI”) detailing the full account of its activities during the previous financial year, and such report will be placed before both the houses of the Parliament;

(ii) preparation of the budget for the next financial year by the IBBI, showing the estimated receipts and expenditure of the IBBI.