There is different procedure for insolvency of financial service provider(FSP). The insolvency of an FSP can only be initiated by the regulator, that is the Reserve Bank of India (RBI). The Ministry of Corporate Affairs issued a press release in 2019, introducing the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 (rules). These rules provide a framework for the systematic insolvency and liquidation of FSPs.

Answer given by Shubhamm Sir at 20-Jan-2023 06:59 PM