IBBI relaxes norms for information utilities

NEW DELHI: The Insolvency and Bankruptcy Board of India (IBBI) has relaxed norms for information utilities, paving way for Indian companies listed on the stock exchanges to hold 100 per cent of the paid-up equity share capital or total voting power rights in such firms. Information utilities are entities that receive and store verified financial information about borrowers and creditors.

These will help establish defaults as well as verify claims expeditiously, facilitating resolution of cases under the Insolvency and Bankruptcy Code, 2016 in a time bound manner. National E-Governance Services Limited (NeSL) is the first information utility registered in the country.

IBBI has amended the IBBI (Information Utilities) Regulations, 2017 which also allows individuals to hold up to 51 per cent of the paid-up equity share capital. This, however, has been limited to a period of three years. The new regulations also require that half of the directors of an information utility shall be Indian nationals and residents in India.