Financial Service

Financial service definition in insolvency law: inclusive list of activities; regulatory status can exclude providers from insolvency treatment

Section 3(16) of the Insolvency and Bankruptcy Code defines Financial Service by listing activities such as accepting deposits, administering financial products, effecting insurance, managing assets, advising or soliciting for financial products or services, establishing investment schemes, maintaining ownership records, underwriting issuances, and providing payment instruments; the enumerated clauses are inclusive. Sections 50 and 167 bar treatment of regulated providers' credit as extortionate, and regulatory classification (e.g., RBI registration of an NBFC) can affect whether an entity is treated as a corporate debtor under the Code.