NCLT New Delhi Bench Court-II held that:
(i) On perusal of the definitions u/s 3(16), 3(15), 3(37) of IBC and Section 2 of the Securities Contracts (Regulation) Act, 1956, it is observed that Shares, Scrips, Stocks, Bonds, Debentures, Debenture Stocks etc., are included under the term “Securities”. Hence, the same can also be treated as a “Financial Product” as defined under Section 3(15) of IBC, 2016.
(ii) Since Corporate Applicant, being a stock broker, was dealing in the activities of buying, selling, or dealing in securities etc., which in terms of Section 3(15) of IBC 2016 are a “Financial Product” belonging to another person. Hence, in terms of Section 3(16) of IBC 2016, the Corporate Applicant was providing “Financial Service” or in other words, it was a “Financial Service Provider”.
(iii) Stock Broker Company is a “Financial Service Provider”. Since the Corporate Applicant Company being a “Financial Service Provider” is outside the purview of the definition of a “Corporate Person” as defined under Section 3(7) of IBC 2016 and therefore, is not a “Corporate Debtor” in terms of Section 3(8) of IBC, 2016, the instant application is not maintainable.