In relief for banks, govt to notify new rules for 3rd party assets under Section 227 of IBC
Updated : January 14, 2020 09:31 AM IST
These rules will help secure the rights of banks under securitisation agreements for cases like DHFL, such that the third party assets of the stressed debtor are kept out of the moratorium applicable under IBC.
Currently, under Section 227 of the IBC, the moratorium will not apply to any third-party assets or properties in custody or possession of the financial service provider, including any funds, securities and other assets required to be held in trust for the benefit of third parties.
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