- August 17, 2017
- Posted by: suvanlaw
- Category: IBBI
- IBBI has invited public comments on draft regulations on Information Utilities
The Insolvency and Bankruptcy Board (IBBI) has sought public comments on the draft norms for information utilities. The fourth working group on bankruptcy set up by the Corporate Affairs Ministry to facilitate implementation of the Code has submitted its report on information utilities which includes draft regulations and proposed amendments to the Code. Information utilities will be playing the role of centralized repositories of financial and credit information of borrowers and they will keep records of the information about firms, and in order to avoid delays in the insolvency resolution process due to lack of data.
The last date for public feedback is 7 February, 2017.
- IBBI notifies Information Utility Regulations
IBBI on March 31, 2017 has notified Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017. These Regulations have laid down the framework for registration and regulation of information utilities (“IUs”).
As per the Regulations, following are some of the criteria to be eligible for registration as an IU:
- The entity should be a public company with a minimum net worth of Rs.50 crore.
- More than half of the directors of its Governing Board shall be independent directors.
- IU, its promoters, its directors, its key managerial personnel, and persons holding more than 5% of its paid-up equity share capital or its total voting power, shall be fit and proper persons.
- National E-Governance Services Limited becomes the first Information Utility in India
By getting an in-principle approval from Insolvency and Bankruptcy Board of India (“IBBI”) for establishing an Information Utility (“IU”), National E-Governance Services Limited (“NeSL”) has become the first IU registered under Insolvency and Bankruptcy Code, 2016 (“IB Code”) in India. NeSL is a Union Government company, owned and promoted by leading public institutions like State Bank of India, Life Insurance Corporation of India, Canara Bank, Bank of Baroda, ICICI Bank, Central Depository Services Limited, HDFC Bank, Axis Bank, Union Bank of India, NABARD etc.
(Disclaimer: Suvan Law Advisors assisted NESL in obtaining registration with IBBI.)