New Delhi, Nov 15 (IANS): In a bid to boost the bankruptcy and insolvency mechanism, the government on Friday said the insolvency regime and the norms for individual guarantors of corporate debtors will come into force from December 1.

A notification by the Ministry of Corporate Affairs (MCA) said that provisions of "(1) clause (e) of section 2, (2) section 78 (except with regard to fresh start process) and section 79", among others, would come into force only in relation to personal guarantors of corporate debtors.

According to 'Clause (e) of Section 2' of the Insolvency and Bankruptcy Code (IBC), the provisions of the code shall apply to partnership firms and individuals.

The government is implementing the provisions for resolution of individuals under the IBC in a phased manner.

In another major development, the MCA on Friday also notified the rules for resolution of systemically important financial services providers (FSPs) under the bankruptcy law.

The new rules will ensure that problems in systematically important NBFCs such as Dewan Housing Finance Corporation (DHFL), IL&FS Financial Services, and India Bulls does not create trouble for the entire sector.

The rules provide a generic framework for insolvency and liquidation proceedings of systemically important FSPs other than banks.