New Delhi, Nov 16 (KNN) The Ministry of Corporate Affairs (MCA) has notified the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 (Rules).

A notification by the Ministry of Corporate Affairs (MCA) on Friday said that provisions of "(1) clause (e) of section 2, (2) section 78 (except with regard to fresh start process) and section 79", among others, would come into force only in relation to personal guarantors of corporate debtors.

According to ''Clause (e) of Section 2'' of the Insolvency and Bankruptcy Code (IBC), the provisions of the code shall apply to partnership firms and individuals.

In another major development, the MCA on Friday also notified the rules for resolution of systemically important financial services providers (FSPs) under the bankruptcy law.

Under the rules notified by the government, the code can be invoked to find a resolution for stressed finance companies such as Dewan Housing Finance Corporation Ltd. (DHFL)

The rules provide a generic framework for insolvency and liquidation proceedings of systemically important FSPs other than banks.

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