Centre suggests exclusion of insurance companies from cross-border insolvency provisions not applicable to pre-pack process for MSMEs

New Delhi, 26 Nov (KNN) The Ministry of Corporate Affairs has brought in an exclusionary recommendation of critical financial service providers such as banks and insurance company from the applicability of cross-border insolvency provisions under the fresh draft it floated outlining legal framework of such matters, as per a news by Economic Times.

It has stated that the proposed norms would not be applicable to newly introduced pre-packaged insolvency resolution process deals with small and micro (MSMEs) companies.

The Ministry has also suggested that all benches of National Company Law Tribunal and Debt Resolution Tribunal may have jurisdiction to adjudicate all such applications.

It is also seeking public comments on draft cross-border insolvency framework under Insolvency and Bankruptcy Code (IBC) by 15th December, 2021.

According to the feedback received, the government will proceed with bill for amendment of IBC in the winter session from 29th November.