Senior officials from ministries of law and finance today briefed a parliamentary panel on various aspects on the financial sector insolvency bill.
The Financial Resolution and Deposit Insurance Bill, 2017, was introduced in the Lok Sabha on August 10 and referred to a 30-member Joint Committee of Parliament headed by BJP MP Bhupender Yadav.
Sources said the officials from ministries of finance and law and justice apprised the parlimentarians of the provisions of the proposed legislation at the first sitting of the Joint Committee.
The bill seeks to create a framework for resolving bankruptcy in financial firms such as banks and insurance companies. It repeals the Deposit Insurance and Credit Guarantee Corporation Act, 1962 and amends 12 other laws.
The next meeting of the panel will take place on September 13, the sources added.
The committee is required to submit its report to Parliament at the begnining of the Winter Session.
According to the bill, the government will establish a Resolution Corporation and its members will include representatives from the finance ministry, the RBI, and Sebi, among others.
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