Information Utilities Regulations, 2017 Notified [Read Notification]
The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.
The object of the Information Utility Regulation is to provide for registration and regulation of information utilities. The Information Utility Regulation will be effective from April 1, 2017.
The role of an information utility is to store financial information of the registered users. On receiving the information relating to default, the information utility shall expeditiously process and verify the information and communicate the status to the registered user. This will help in completion of transaction under the Insolvency Code well in time.
The Regulation provides following eligibility conditions for a registration as an Information Utility:
- A public limited company with minimum net worth of Rs. 50 crores.
- Control of persons should not be with person resident outside India.
- Person resident outside India should not hold more than 49% of its voting power or paid-up equity capital.
- Promoters, Directors, key managerial personnel and persons holding more than 5% paid-up equity share capital or total voting power must be fit and proper persons,
To safe guard the interest of its users the Regulation provides for the following:
- Technical standards for performance of core and other service by an Information Utility.
- Grievance Redressal Policy
Appoint a compliance officer who will be responsible for ensuring compliance with the provisions of the Code applicable to the information utility. The Compliance officer will independently report the non-compliance to the Insolvency Board.
Read the Press Release and Notification here.