Financial Creditor

Any person to whom a financial debt is owed, including banks, NBFCs, debenture holders, and home buyers (as per 2018 amendment). Financial creditors form the Committee of Creditors in a CIRP.

Financial Creditor is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.

Financial Creditor is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.