The NCLAT, New Delhi has agreed to examine whether a stock broking company should be considered as a Financial Service Provider under Section 3(16) of the Insolvency and Bankruptcy Code, 2016 and should be kept out of the purview of the Insolvency and Bankruptcy Code, 2016 (“IBC”)?
A petition under Section 7 of the IBC was filed in NCLT, Ahmedabad by the client of the Stock Broker, against his trading of shares in the Futures & Options Segment of the NSE
A Bench of Justice Jarat Kumar Jain, Member (Judicial) and Dr. Ashok Kumar Mishra, Member (Technical) also directed that no Committee of Creditors formed in the insolvency proceedings against Simandhar Broking Ltd
The insolvency plea was filed under Section 7 of the IBC by the client of Simandar Broking Ltd, against his trading of shares in the Futures & Options Segment of the National Stock Exchange.
Senior Advocate Krishnendu Datta with Advocates Hemant Sethi, Advocate Gaurav H Sethi, Abhinav Tyagi appeared for the Appellant.
Advocates Abhishek Swaroop, Kiran Shah, Noman Singh Bagga appeared for the Respondent.
The matter would be heard next on July 5.