Finance Ministry has extended the last date for sending comments and suggestions on Draft Financial Resolution and Deposit Insurance (FRDI) Bill to set up a resolution corporation.
A number of requests have been received from stakeholders and institutions of repute for extending the time-line for providing comments on the draft Bill, which is accordingly extended till October 31, the ministry said in a statement.
The government had invited stakeholder or public comments on the FRDI Bill, 2016 from September 28 to October 14.
All stakeholders concerned/public are requested to forward comments/suggestions that they may wish to submit on the Draft Bill by October end.
The government decision on the Report and the Draft Bill will be taken after the receipt of public or stakeholders comments and the due procedure thereafter, it said.
Finance Minister Arun Jaitley, in his 2016-17 budget speech, said a comprehensive code on resolution of insolvency cases in financial firms will be introduced as a bill in Parliament in this fiscal.
“A systemic vacuum exists with regard to bankruptcy situations in financial firms. This code will provide a specialized resolution mechanism to deal with bankruptcy situations in banks, insurance firms and financial sector entities. This code, together with the Insolvency and Bankruptcy Code 2015, when enacted, will provide a comprehensive resolution mechanism for our economy,” he had said.
Following the announcement, on March 15, the ministry set up a panel under additional secretary Ajay Tyagi to draft the bill which was later submitted.