New Delhi, Nov. 22 -- The government on Friday, 15 November, issued fresh rules under the Insolvency and Bankruptcy Code (IBC) that are likely to help out distressed shadow banks and housing financiers, which have been battling a liquidity crunch for a year.
The ministry of corporate affairs said that financial services providers, or classes of such entities, will be covered by a special window under the bankruptcy code, which will be notified from time to time. The decision will be made after talks with the concerned regulators.
The move is likely to help distressed Dewan Housing Finance Corp. Ltd (DHFL) to draw up a resolution plan under IBC. Potential investors may prefer the protection offered by the legal process.
As per the new rul...