Avoid in the law that till now offered no resolution path for troubled non-banking finance companies (NBFCs) which are unable to service their debts has been partly filled. The process will differ from the way IBC applies to manufacturing companies. As in the case of manufacturing companies, existing promoters and parties connected to them are barred from participating in the resolution process. The notification to bring financial service providers under IBC excludes banks — and, rightly so. The government has and should distinguish between banks and shadow banks.

Source: Economic Times November 17, 2019 17:15 UTC