NCLAT Rejects Equitas Plea Against Jumbo Finvest, Upholds FSP Status

• NCLAT rejected Equitas Small Finance Bank's appeal to initiate insolvency proceedings against Jumbo Finvest.
• The appellate tribunal upheld NCLT's order, which stated Jumbo Finvest is a Financial Service Provider (FSP).
• FSPs are not considered 'corporate persons' under IBC Section 7 for standard insolvency applications.
• Equitas argued RBI's ban meant Jumbo Finvest wasn't an FSP, but NCLAT disagreed, noting its registered status until cancellation.
• Insolvency proceedings for FSPs require specific mechanisms, often initiated by the regulator, not just any creditor.

Why It Matters: NCLAT confirms Jumbo Finvest's FSP status, rejecting Equitas's insolvency plea under standard IBC rules.